Projections for Planning Purposes Only -- Not to be Used without Updating 2014 Estimated Costs and Returns per Animal Unit Commercial Sheep, Wool/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 Wool, 20.6-22.0 Mic Total Revenue Head 2.000 1.000 1.000 0.050 5.000 VARIABLE COSTS Production Costs Miscellaneous Supplies Predator Control - Sheep Brush Control PRF Rainfall Ins Tag Sheep Shear Sheep 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 8.00 225 368.5 143.5 Quantity 5 5 30 30 5 5 1.00 135 300 54 54 1 1.0 10.0% 1 0.60 1.00 Units CWT CWT CWT CWT Pound $/Unit $118.00 $118.00 $52.00 $52.00 $4.00 Total $177.00 $88.50 $70.20 $4.42 $160.00 $500.12 Enterprise Total $17,700.00 $8,850.00 $7,020.00 $442.00 $16,000.00 $50,012.00 Units $/Unit Total Enterprise Total Head Head Acre Acre Head Head AU $3.00 $2.10 $1.00 $0.85 $1.90 $4.00 $18.58 $15.00 $10.50 $30.00 $25.50 $9.50 $20.00 $18.58 $1,500.00 $1,050.00 $3,000.00 $2,550.00 $950.00 $2,000.00 $1,857.70 Pound Pound Pound Pound AU AU Percent AU Hours AU $0.12 $0.15 $0.11 $0.52 $7.66 $67.80 $67.80 $52.32 $15.00 $24.00 4.00% $16.20 $45.00 $5.99 $27.97 $7.66 $67.80 $6.78 $52.32 $9.00 $24.00 $13.72 $405.53 $1,620.00 $4,500.00 $599.40 $2,797.20 $765.80 $6,780.00 $678.00 $5,232.49 $900.00 $2,400.00 $1,372.01 $40,552.60 $94.59 $9,459.40 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 $75.96 Units AU AU Dollars Acres $/Unit $57.50 $15.00 3.75% $4.00 $199.16 CWT Total $57.50 $15.00 $84.71 $120.00 $277.21 $682.74 ($182.62) CWT Enterprise Total $5,750.18 $1,500.00 $8,470.81 $12,000.00 $27,720.99 $68,273.59 ($18,261.59) Sensitivity Analysis for Example Example Weaning Percent 100% 90% 80% 70% 60% Example Gross Sales per AU $566.50 $533.31 $500.12 $466.93 $433.75 Pounds Produced per AU 425 397 369 340 312 Example Breakeven Offspring Pay Weight to Cover Total Cost 95 109 127 152 190 Example Offspring Price Example Offspring Price Example Weighted Average Offspring Price ($/cwt) Example Average Break Even Price to Cover Total Cost $159.33 $177.03 $199.16 $227.61 $265.55 $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.