Projections for Planning Purposes Only -- Not to be Used without Updating
2016 Estimated Costs and Returns per Animal Unit
Trans Pecos Wool Sheep, 5 Head per AU - 500 Ewes
Far West Extension District - 6
Animal Units (AU)
Breeding Females
REVENUE
Lambs
Lambs
Cull Ewes
Wool
Total Revenue
100
500
Head
2.330
1.230
1.100
5.000
VARIABLE COSTS
Production Costs
Miscellaneous
Custom Shearing
Predator Control
Parasite Monitoring
Marketing Expense
Feed
10-10 Loose Mineral
Cottonseed - S&G
Vet. Medicine
Clostridials S&G
Deworm S&G-Ivomec
Lice control - S&G
Repairs
Labor
Interest on Credit Line
Total Variable Costs
Animal Unit
Lamb
Quantity
Per Head
0.80
0.80
1.25
8.80
284.8
422.3
137.5
Quantity
Units
CWT
CWT
CWT
Pound
$/Unit
$185.00
$185.00
$72.00
$1.75
Total
$344.84
$182.04
$99.00
$77.00
$702.88
Enterprise
Total
$34,484.00
$18,204.00
$9,900.00
$7,700.00
$70,288.00
Units
$/Unit
Total
Enterprise
Total
5
65
1.375
1.00
Head
Acre
Head
AU
$3.00
$0.25
$2.00
$24.42
$15.00
$16.25
$2.75
$24.42
$1,500.00
$1,625.00
$275.00
$2,441.84
10.5
150
Pound
Pound
$0.57
$0.13
$5.99
$19.50
$598.50
$1,950.00
5
10
10
1
3.20
Dose
Dose
Dose
AU
Hours
$0.56
$0.46
$0.46
$39.16
$10.00
6.50%
$2.80
$4.60
$4.60
$39.16
$32.00
$11.31
$178.37
$280.00
$460.00
$460.00
$3,915.60
$3,200.00
$1,131.41
$17,837.35
$524.51
CWT
$52,450.65
Planned Returns Above Variable Costs:
Average Lamb Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$515.41
Pasture Cost
1
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Lamb Breakeven Price to Cover Total Costs
$0.83
Units
AU
AU
dollars
Acres
$/Unit
$61.68
$123.96
6.50%
$225.00
$156.78
Total
$61.68
$123.96
$33.50
$225.00
$444.14
$622.52
$80.36
CWT
Enterprise
Total
$6,168.00
$12,396.00
$3,350.17
$22,500.00
$44,414.17
$62,251.51
$8,036.49
Sensitivity Analysis for Example
Example Weaning
Percent
113%
103%
93%
83%
73%
Example Gross
Sales per Animal
Unit
$816.07
$759.47
$702.88
$646.29
$589.69
Pounds
Produced
per AU
483
453
422
392
361
Example Breakeven
Lamb Pay Weight to
Cover Total Cost
53
60
68
79
94
Example Male Lamb Price
Example Female Lamb Price
Example Weighted Average Lamb Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$129.06
$141.58
$156.78
$175.65
$199.68
$185.00
$185.00
$185.00
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.