Date of Graduation

2003

Document Type

Thesis

Degree Type

MS

Committee Chair

Gerard D'Souza

Abstract

Cow-calf operations are important enterprises for family farmers in Appalachia and provide significant opportunity for supplemental income. Alternatives to traditional production methods that not only offer higher income potential but also lower risk levels need to be addressed for the benefit of the region’s producers. This thesis presents an analysis of one such alternative, pasture-raised beef production. Stochastic budgeting was used to compare profit and risk levels experienced by numerous categories of grassfed and traditional producers. Results showed that risk in pasture-raised operations is primarily production-related while risk for traditional producers is price-related and is, in general, more severe than for pasture-raised counterparts. Profitability is higher for pasture-raised beef producers even though higher operating costs are incurred because of intensive pasture management and longer animal retention. Pasture-raised revenues were calculated using current retail beef prices, while traditional revenues were derived from distributions of feeder prices from several West Virginia markets.

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