SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1981 THE EFFECT OF INCREASING TRANSPORTATION COSTS ON FLORIDA'S CATTLE FEEDING INDUSTRY: AN EXTENSION APPLICATION

Rapid fuel price increases in 1979 and early data are readily available, thus exacerbating an 1980, along with concern about further rises, already expensive process. have led to speculation that Florida, a net calf An alternative method for considering the exporter but net importer of finished cattle and probable impact of higher fuel costs on the trans-beef, will be increasingly competitive in finishing port of cattle is presented here. The method is cattle to slaughter weight. This hypothesis is not designed to replace spatial equilibrium tech-strengthened by recognition of significant struc- niques developed for use with computers; rather, tural changes in the Florida cattle feeding indus- it is intended to complement such approaches. try since the late 1960s, as large-scale feedlots This method is analogous to the use of partial were developed and smaller-scale feeders de- budgeting, rather than complete enterprise bud-clined in importance (Simpson and Baker). Fur- geting to solve investment questions. It is an out-thermore, yield improvements and new tech- growth of recognition of the increasing need for niques, such as the use of bagasse for silage and cost-effective techniques that have an "accept-feeding of high-moisture corn, have been able " degree of validity, and that can be used adopted in the production of Florida feedstuffs. quickly by extension personnel and others to an