Projections for Planning Purposes Only -- Not to be Used without Updating
2014 Estimated Costs and Returns per Animal Unit
Commercial Hair Sheep, Lamb Production, 5 Head per AU - 100 Animal Units
West Central Extension District - 7
Animal Units (AU)
Breeding Females
100
500
REVENUE
Lambs
Lambs
Cull Ewes
Cull Rams
Total Revenue
Head
3.000
2.000
1.000
0.050
VARIABLE COSTS
Production Costs
Miscellaneous
Supplies
Predator Control - Sheep
Brush Control
PRF Rainfall Ins
Marketing Expense
Feed
Corn - Sheeep and Goat
Cotton Seed - Sheep and Goat
Salt - Sheep
Mineral - Sheep
Vet. Medicine
Fuel
Lube (As a % of fuel)
Repairs
Labor
Utilities
Interest on Credit Line
Total Variable Costs
Quantity
Per Head
0.75
0.75
1.35
1.70
375
518.5
143.5
Quantity
1
5
30
30
1.00
135
300
54
54
1
1.0
10.0%
1
0.30
1.00
Units
CWT
CWT
CWT
CWT
Units
$/Unit
Total
$265.50
$177.00
$70.20
$4.42
$517.12
Enterprise
Total
$26,550.00
$17,700.00
$7,020.00
$442.00
$51,712.00
Total
Enterprise
Total
AU
Head
Acre
Acre
AU
$15.00
$2.10
$1.00
$0.85
$27.53
$15.00
$10.50
$30.00
$25.50
$27.53
$1,500.00
$1,050.00
$3,000.00
$2,550.00
$2,752.70
Pound
Pound
Pound
Pound
AU
AU
Percent
AU
Hours
AU
$0.12
$0.15
$0.11
$0.52
$2.98
$67.80
$67.80
$52.32
$15.00
$24.00
4.00%
$16.20
$45.00
$5.99
$27.97
$2.98
$67.80
$6.78
$52.32
$4.50
$24.00
$13.06
$375.13
$1,620.00
$4,500.00
$599.40
$2,797.20
$297.52
$6,780.00
$678.00
$5,232.49
$450.00
$2,400.00
$1,305.89
$37,513.20
$141.99
CWT
$14,198.80
Planned Returns Above Variable Costs:
Average Steer-Heifer Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1
Depreciation - Livestock
1
Equipment Investment
$2,258.88
Native Pasture Rent
30.00
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Steer-Heifer Breakeven Price to Cover Total Costs
$/Unit
$118.00
$118.00
$52.00
$52.00
$80.14
Units
AU
AU
Dollars
Acres
$/Unit
$57.50
$15.00
3.75%
$4.00
$154.06
Total
$57.50
$15.00
$84.71
$120.00
$277.21
$652.34
($135.22)
CWT
Enterprise
Total
$5,750.18
$1,500.00
$8,470.81
$12,000.00
$27,720.99
$65,234.19
($13,522.19)
Sensitivity Analysis for Example
Example Weaning Percent
140%
130%
120%
110%
100%
Example
Gross Sales
per AU
$590.87
$554.00
$517.12
$480.25
$443.37
Pounds
Produced
per AU
581
550
519
487
456
Example Breakeven
Offspring Pay Weight
to Cover Total Cost
82
89
98
109
122
Example Offspring Price
Example Offspring Price
Example Weighted Average Offspring Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$132.05
$142.21
$154.06
$168.06
$184.87
$118.00
$118.00
$118.00
Developed by Bill Thompson, Assistant Professor and Extension Economist, Texas A&M AgriLife Extension Service.
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.