Research Progress Report 361
August, 1969
Analysis of Farmers’ Purchase Patterns of Formula Cattle and Swine Feeds, 1960-65
Arlo J. Minden And Brian D. Riddell’
Department of Agricultural Economics
From 50 per cent to 75 per cent of the cost of raising livestock may be attributed to feed (3). Sale of livestock and livestock products in 1965 exceeded 50 per cent of total farm cash receipts in the U.S. This study was undertaken to provide information about the major factors associated with observed purchase patterns for commercially prepared cattle and swine formula feeds. 11 The findings reported here will aid in understanding the market for cattle and swine formula feeds. Such information will, when integrated with the findings of Kohls (1), Krueckeberg (2) and others, provide a basis for developing projections of future purchase patterns and marketing strategies. Current and anticipated demands for services provided by feed suppliers were also analyzed.
Data
Data used in this study represent actual purchases of cattle and swine formula feeds by a representative panel of about 900 farmers in Illinois.V Panel members provide monthly diary records of farm input purchases which reflect type, form, quantity and actual prices paid.
Current demographic descriptions of each individual farm operation and farm operator are also included. Distribution of panel members by size of operation, ownership, location, age, etc., corresponds well with U.S. Census of Agriculture stratification, Table 1. Extension of panel values to state totals can be accomplished by applying appropriate census stratification coefficients. Panel data used in this study include monthly observations for the period 1960-65.
* Associate professor and graduate research assistant, respectively.
1/ Formula feeds are mixed feeds manufactured to meet specific standards under a licensed trade name or brand.
2/ Data for this study were collected by the Farm Research Institute, Urbana, Illinois. The institute maintains panels of commercial farms who supply confidential information on a regular basis. The institute supplies Purdue University with information in a form that would completely protect the confidential nature of reports provided by panel members. In no case was the name of any panelist available to the University.
PURDUE UNIVERSITY • Agricultural Experiment Station • Lafayette, Indiana