Hedonic modeling to facilitate price reporting and fed cattle market transparency

Abstract Livestock Mandatory Price reporting, enacted to increase market transparency, has been in place for more than 20 years. However, immense structural change cattle and beef markets challenged information over that time. Large variation present transaction prices, especially those the Formula purchases category, on any given day made traditionally United States Department of Agriculture (USDA)‐reported weighted‐average prices less meaningful. Using nearly 6 years The Reporting Act 1999 transactions data from USDA Agricultural Marketing Service (USDA AMS), we demonstrate use hedonic modeling facilitate price reporting. While models show promise provide useful information, they reveal substantial weaknesses associated with current collected by packers. We offer suggestions improved collection which would make a valuable tool usefulness reported prices.