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Kansas State University's Department of Agricultural Economics discusses trends and implications of premiums and discounts for US fed cattle, which have evolved over time due to changing customer and consumer demand for beef. The use of Alternative Marketing Agreements (AMAs) has shifted the overall quality and value of cattle and beef. Grid premiums and discounts have adapted to these shifts, with price variation for formula-purchased cattle being much greater than for cash-negotiated purchases. The department notes that under cash negotiated pricing, 80% of fed cattle purchased receive a net dressed price within $2/cwt of the weighted average price, while 80% of formula-purchased cattle realize a net dressed price within $10/cwt of the weighted average. The fact sheet summarizes trends in key grid premiums and discounts, including weight, with heavier weight cattle being consistently produced since the early 1990s. Discounts for light-weight carcasses have widened, while discounts for heavy-weight carcasses have decreased, with packers preferring heavier carcasses due to added efficiency. Knowing specific weight discounts for the grid being marketed is critical, with ranges in weight discounts being large at over $50/cwt for light-weight and $15/cwt for heavy-weight.