Question: You are deciding on how many steers to put on your 200 ac pasture. You will to start them in late April and sell them in mid-to-late October (180 days). Contacting with your local extension agent, you receive a publication that has the following equation for the average daily gain in pounds (ADG): ADG = 2.9 – 0.25*SR, where SR is the initial stocking rate (500 lbs of live steers per acre initially put on the pasture, i.e., ten 500 lb steers on 100 acres is a SR = 10/100 = 0.1). Gain per steer will then be the ADG times the number of days you keep them on the pasture (here 180). You can buy steers from a neighbor for $500/steer where steers are at about 500 lbs already. Fill in the table below to answer the following questions. The price for beef is provided in questions a) and b). It may be easiest to put the table into a spreadsheet to perform the calculations.

1. You talk to your buyer in March and he says he can buy them in October and pay you $225/cwt. At this price, what is the economically optimal number of steers to buy and put on the pasture?
2. You call your buyer a week later to lock in the price and he says markets have changed, he can only get you $220/cwt. At this new price, what is the economically optimal number of steers to buy and put on the pasture?

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