The effect of animal characteristics and placement decisions on retained ownership profitability of Tennessee cattle from 2005 to 2015 was determined using a mixed model regression. Ex post simulation analysis examined retained ownership profitability by placement season under different animal characteristic and corn price scenarios. Regression results indicate that placement weight, placement season, days on feed, animal health, and animal sex affect retained ownership profitability. Simulation results indicate that winter placement of cattle in feedlots had the highest expected retained ownership profits. Results provide risk-averse producers information regarding the profitability of retained ownership.

Considerable efforts have been made to provide cow-calf producers withinformation to help them make informed decisions about adding value tocalves. Despite demonstrated market incentives to retain calves, manyproducers still sell right after weaning. We postulate this observedbehavior is related to producer risk aversion. Our study concludes riskaversion is an important factor affecting calf retention as the mostrisk-averse producers have more than a 60% probability of selling calves atweaning and the most risk tolerant have less than a 20% probability ofselling at weaning.