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Grid and Formula Pricing in the Beef Industry

Matthew Herrington and, Glynn Tonsor (March, 2012)

Summary

This fact sheet provides an updated examination of pricing methods for US fed cattle. The Mandatory Price Reporting Act (MPR), enacted in April of 2001, motivates this update as most existing fact sheets were written prior to MPR. The added market transparency created by MPR likely changed many aspects of the fed cattle market complex, including fed cattle pricing methods. Producers who are aware of these pricing methods will better understand the factors influencing the final price of their cattle.