Cattle producers and markets faced massive disruptions due to COVID‐19 in both supply and demand for cattle and beef. Restaurant and food service shutdowns affected beef demand. Closures and slowdowns of beef processors caused a logjam of live cattle in the supply chain. The resulting effects on cattle producers at all levels were lower prices and abnormal cattle flows, but the magnitudes of those effects were not homogenous across size and type of cattle. In this article, we detail how the COVID‐19 pandemic has affected cattle markets and cattle producers across the different sectors. We also discuss policy responses and considerations.

A hedonic model was employed to examine factors impacting feeder cattle prices at a monthly video auction in Tennessee. Home-raised cattle were estimated to have a $2 per cwt. premium and cattle that have been tested for PI-BVDV (persistent infections with bovine viral diarrhea virus) sold for a premium of $1.19 per cwt. We also show how price varies across sale months for steers and heifers, suggesting opportune times to market gender-specific lots. Corn price was interacted with an average weight per head of the lot to show that lighter cattle were negatively affected, while heavier cattle prices were positively affected by increasing corn prices.

We determine optimal stocker strategies based on calving season, herd size, and the number of days of retention before marketing weaned calves. We estimate a hedonic pricing model for feeder cattle and incorporate this into a simulation model that considers the variability of cattle prices and feed costs. The profit and utility-maximizing decision for fall calving herd would be to retain weaned calves for 150-day postweaning. The producer marketing spring-born calves would prefer to sell these calves at weaning. The results are being utilized by extension to aid cattle producers in reducing their feed costs and increasing their profits.

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