Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Head
Small Acreage Hair Sheep - 12 Ewes
West Central Extension District - 7
Breeding Females
12
REVENUE
Lambs - Wether
Lambs - Ewe
Cull Ewes
Cull Rams
Total Revenue
Head
0.667
0.417
0.167
0.083
VARIABLE COSTS
Production Costs
Miscellaneous
Supplies
PRF Rainfall Ins
Marketing Expense
Feed
Cotton Seed - Sheep and Goat
Mineral - Sheep
Salt - Sheep
Vet. Medicine
Soremouth
Fly and Lice
Fuel
Lube (As a % of fuel)
Repairs
Utilities
Interest on Credit Line
Total Variable Costs
Quantity
Per Head
0.75
0.75
1.25
2.00
81.25
118.75
37.5
Quantity
Units
CWT
CWT
CWT
CWT
$/Unit
$183.95
$183.95
$71.45
$75.00
Total
$91.98
$57.48
$14.89
$12.50
$176.84
Enterprise
Total
$1,103.70
$689.81
$178.63
$150.00
$2,122.14
Units
$/Unit
Total
Enterprise
Total
0.67
3.33
1.00
Head
Acre
Head
$3.00
$0.85
$6.10
$2.00
$2.83
$6.10
$24.00
$34.00
$73.18
45.00
9.88
9.88
Pound
Pound
Pound
$0.14
$0.52
$0.11
$6.19
$5.14
$1.09
$74.25
$61.67
$13.05
1.25
4.38
1.00
0.10
1.00
1.00
Dose
ML
Head
Percent
Head
Head
$0.14
$0.04
$4.72
$4.72
$28.10
$6.00
4.00%
$0.18
$0.18
$4.72
$0.47
$28.10
$6.00
$2.27
$65.25
$2.10
$2.10
$56.63
$5.66
$337.14
$72.00
$27.24
$783.02
$111.59
CWT
$1,339.12
Planned Returns Above Variable Costs:
Average Lamb Breakeven Price to Cover Variable Costs
FIXED COSTS
Quantity
Depreciation - Equipment
1.00
Depreciation - Livestock
1.00
Pasture Cost
3.33
Total Fixed Costs
Total Costs
Planned Returns to Management, Risk, and Profit:
Average Lamb Breakeven Price to Cover Total Costs
$46.60
Units
Head
Head
Acres
$/Unit
$119.73
$2.78
$6.00
$222.00
Total
$119.73
$2.78
$20.00
$142.51
$207.76
($30.91)
CWT
Enterprise
Total
$1,436.73
$33.33
$240.00
$1,710.06
$2,493.08
($370.94)
Sensitivity Analysis for Example
Example Weaning Percent
145%
135%
125%
115%
105%
Example
Gross
Sales per
AU
$200.76
$188.80
$176.84
$164.89
$152.93
Pounds
Produced
per AU
132
125
119
112
106
Example Breakeven
Lamb Pay Weight to
Cover Total Cost
75
82
89
98
109
Example Male Lamb Price
Example Female Lamb Price
Example Weighted Average Lamb Price ($/cwt)
Example Average Break Even
Price to Cover Total Cost
$191.38
$205.55
$222.00
$241.30
$264.28
$183.95
$183.95
$183.95
Developed by Bill Thompson, Associate 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.