GIPSA Texas Panhandle Fed Cattle Investigation:

Peer Reviews and Results of Analysis

GIPSA conducted an investigation of cattle procurement in the Texas Panhandle region to examine the procurement areas, procurement methods, and pricing methods used in the region; compare actual prices paid with publicly reported prices; and study the effects of packers' use of non-spot procurement methods on the prices paid for cattle in the spot market. Non-spot procurement methods include forward contracts, marketing agreements, and packer feeding programs. GIPSA collected detailed data on the cattle procurement activities of four large beef packing plants in that region covering the period from early February 1995 to mid-May 1996. GIPSA collected detailed data on procurement transactions and conducted extensive interviews with feedlot operators to learn about procurement behavior. As part of the investigation, GIPSA commissioned Professor John R. Schroeter of Iowa State University and Professor Azzeddine M. Azzam of the University of Nebraska - Lincoln to conduct an econometric analysis of the data collected for the study. GIPSA asked seven distinguished outside authorities to review the Texas Panhandle investigation, including Schroeter and Azzam's preliminary report, to evaluate whether GIPSA asked the right questions, collected the right data, and conducted sound analyses using appropriate models. The peer reviewers' reports are below. Schroeter and Azzam's report, Econometric Analysis of Fed Cattle Procurement in the Texas Panhandle, and their response to the peer reviewers' comments follow.

Peer Reviews

  • Dr. DeeVon Bailey, Professor of Economics, Utah State University

  • Ronald Fecso, Chief Statistician, National Science Foundation

  • Dayton Lehman, Deputy Assistant General Counsel, U.S. Department of Transportation

  • Dr. H. Alan Love, Associate Professor of Agricultural Economics, Texas A&M University

  • Dr. Richard Sexton, Professor of Agricultural Economics, University of California-Davis

  • Dr. Valerie Suslow, Associate Professor of Economics, University of Michigan

  • Dr. Michael Wohlgenant, Professor of Agricultural Economics, North Carolina State University

  • Schroeter and Azzam

  • Report: "Econometric Analysis of Fed Cattle Procurement in the Texas Panhandle"

  • Response to Peer Review

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