Projections for Planning Purposes Only -- Not to be Used without Updating
2014 Estimated Costs and Returns per Animal Unit
Wool Sheep, 5 Head per AU - 100 Animal Units
Southwest Extension District - 10
Animal Units (AU)
Breeding Females
REVENUE
Lambs
Lambs
Cull Ewes
Wool
Total Revenue
100
500
Head
2.150
1.060
1.100
5.000
VARIABLE COSTS
Production Costs
Miscellaneous
Custom Shearing
Predator Control
Parasite Monitoring
Marketing Expense
Feed
Cottonseed - S&G
10-10 Loose Mineral
Cottonseed - S&G
10-10 Loose Mineral
10-10 Loose Mineral
Working Dog Food
10-10 Loose Mineral
10-10 Loose Mineral
Working Dog Food
Vet. Medicine
Repairs
Labor
Interest on Credit Line
Total Variable Costs
Quantity
Per Head
0.65
0.65
1.10
8.80
208.65
329.65
121
Quantity
Units
CWT
CWT
CWT
Pound
Units
$/Unit
$121.85
$121.85
$54.55
$4.60
$/Unit
Total
$170.28
$83.95
$66.00
$202.40
$522.63
Enterprise
Total
$17,028.00
$8,395.20
$6,600.00
$20,240.00
$52,263.20
Total
Enterprise
Total
5
65
1.375
1.00
Head
Acre
Head
AU
$3.00
$0.25
$2.00
$27.38
$15.00
$16.25
$2.75
$27.38
$1,500.00
$1,625.00
$275.00
$2,738.13
75
2.1
75
2.1
2.1
7.29
2.1
2.1
7.29
1
1
3.20
Pound
Pound
Pound
Pound
Pound
Pound
Pound
Pound
Pound
AU
AU
Hours
$0.14
$0.36
$0.14
$0.36
$0.36
$0.60
$0.36
$0.36
$0.60
$16.80
$47.09
$10.00
6.50%
$10.50
$0.76
$10.50
$0.76
$0.76
$4.37
$0.76
$0.76
$4.37
$16.80
$47.09
$32.00
$12.83
$203.62
$1,050.00
$75.60
$1,050.00
$75.60
$75.60
$437.40
$75.60
$75.60
$437.40
$1,680.00
$4,708.69
$3,200.00
$1,282.67
$20,362.30
$319.01
($31.05) CWT
$31,900.90
Planned Returns Above Variable Costs:
Average Kid or Lamb Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$359.73
Native Pasture Rent
1.00
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Kid or Lamb Breakeven Price to Cover Total Costs
Units
AU
AU
Dollars
Acres
$/Unit
$35.97
$123.96
6.50%
$147.00
$127.27
Total
$35.97
$123.96
$23.38
$147.00
$533.94
($11.31)
CWT
Enterprise
Total
$3,597.33
$12,396.00
$2,338.27
$14,700.00
$53,393.90
($1,130.70)
Sensitivity Analysis for Example
Example Weaning Percent
106%
96%
86%
76%
66%
Example
Gross Sales
per AU
$581.69
$552.16
$522.63
$493.10
$463.58
Pounds
Produced
per AU
378
354
330
305
281
Example Breakeven
Offspring Pay Weight
to Cover Total Cost
52
59
68
81
99
Example Offspring Price
Example Offspring Price
Example Weighted Average Offspring Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$103.28
$114.02
$127.27
$143.99
$165.77
$121.85
$121.85
$121.85
Developed by Rob Hogan, Associate Professor and Extension Economist, Texas A&M AgriLife Extension.
Information presented is prepared solely as a general guide and not intended to recognize or predict the costs and
returns from any one operation. Brand names are mentioned only as examples and imply no endorsement.