Date of Award
5-2026
Document Type
Thesis
Degree Name
Master of Science (MS)
Department
Agricultural and Applied Economics
Committee Chair/Advisor
Anastasia Thayer
Committee Member
Felipe de Figueiredo Silva
Committee Member
Adam J. Kantrovich
Committee Member
Nathan B. Smith
Abstract
The cattle industry is a large and important economic sector, serving as a pivotal contributor to both the agricultural and national economies. Drought has become increasingly more prevalent, creating challenges for the agricultural industry as a whole and the beef cattle industry specifically. During periods of reduced rainfall, producers face forage shortages, increased expenses, and difficult production decisions. The United States Department of Agriculture has created insurance programs such as Pasture, Rangeland, and Forage Insurance to alleviate these effects.
This thesis first examines how drought affects feeder cattle markets in the southeastern United States. Using livestock auction data from 2008 to 2018, covering ten states and 158 auction locations, data to characterize drought, the Chicago Mercantile Exchange (CME) futures market data, and the cattle market during this time, this research aims to measure how drought changes feeder cattle cash prices and basis. The results show that extreme and exceptional drought conditions lead to lower feeder cattle cash prices and basis across the region. Understanding these effects can help producers make marketing decisions, as well as guide policy design to provide assistance to risk management programs to offset the financial hardships of drought.
This thesis then studies whether eligibility for Pasture, Rangeland, and Forage (PRF) insurance influenced feeder cattle markets by altering the cash price and basis. By comparing auction markets in Georgia and Tennessee before and after changes to PRF eligibility, this study evaluates whether the program affected local prices and basis. Using beef cattle auction data from 2009 to 2013, CME futures market data, and state level cattle market data, we find that PRF eligibility had a positive impact on feeder cattle prices and basis in the eligible state (Georgia). Understanding these effects can help to guide future policy design for beef cattle producers and index insurance programs aimed at reducing farmers’ exposure to risks.
Recommended Citation
Mull, Daniel B., "The Impact of Drought and Insurance Policies on Southeastern Feeder Cattle Markets" (2026). All Theses. 4764.
https://open.clemson.edu/all_theses/4764