Cow-calf Expansion with the Removal of Transportation Subsidies in East Central Saskatchewan, Canada

Ninety farm households located in East-Central Saskatchewan were surveyed to determine the characteristics that affected their decision to enter into, expand, or not expand cow-calf production between 1995 and 2001. Of the 90 farm households, 36 had increased, 40 had maintained, and 14 had decreased the size of their beef cowherd between 1995 and 2001. The study found first that given the effect of age on the probability of beef cowherd expansion, new entrants to farming will be needed if beef cattle numbers are to significantly expand. Second, in order to cover the high switching costs involved with shifting from grain to cow-calf production, the farm household typically needs to borrow money. Third, farm households that owned beef cows in 1995 are the group of farm households that have been predominantly responsible for the expansion of the beef cowherd in the research area between 1995 and 2001. Fourth, farm households with farm operators earning income from off-farm employment were hindered from expanding their beef cowherd between 1995 and 2001. Farm advisors should realize farm households consider many other factors in their decision making than just on-farm economics