Journal or Book Title
Journal of Agricultural and Applied Economics
First Page or Article ID Number
After controlling a variety of feeder cattle characteristics and market and sale conditions in Iowa feeder auctions, the price premiums for preconditioning claims (vaccinations and minimum 30 days of weaning) with and without third-party certification (TPC) are estimated as $6.12/cwt and $3.35/cwt, respectively. These premiums differ statistically (p < 0.0001), and their difference exceeds the average participation cost of TPC ($l/cwt). This indicates that TPC is valued in the market to credibly signal preconditioning investment under asymmetric information.
Q11, Q12, Q13, C23
Southern Agricultural Economics Association
Bulut, Harun and Lawrence, John, "The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions" (2007). Economics Publications. 479.