Projections for Planning Purposes Only -- Not to be Used without Updating 2016 Estimated Costs and Returns per Animal Unit Commercial Hair Sheep, Lamb Production, 5 Head per AU - 500 Ewes West Central Extension District - 7 Animal Units (AU) Breeding Females REVENUE Lambs - Wether Lambs - Ewe Cull Ewes Cull Rams Total Revenue 100 500 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 Overeat/Tetnus Soremouth Cylence-Fly and Lice control Fuel Lube (As a % of fuel) Repairs Labor Utilities Interest on Credit Line Total Variable Costs Animal Unit Lamb Quantity Per Head 0.75 0.75 1.35 1.70 375 518.5 143.5 Quantity Units CWT CWT CWT CWT $/Unit $190.00 $190.00 $86.00 $90.00 Total $427.50 $285.00 $116.10 $7.65 $836.25 Enterprise Total $42,750.00 $28,500.00 $11,610.00 $765.00 $83,625.00 Units $/Unit Total Enterprise Total 1 5 30 30 1.00 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 $2,752.70 135 300 54 54 Pound Pound Pound Pound $0.07 $0.13 $0.11 $0.52 $9.64 $39.75 $5.94 $28.08 $963.90 $3,975.00 $594.00 $2,808.00 5 5 23.4 1.0 10.0% 1 0.30 1.00 Dose Dose ML AU Percent AU Hours AU $0.27 $0.14 $0.04 $33.00 $33.00 $52.32 $15.00 $24.00 6.50% $1.35 $0.70 $0.94 $33.00 $3.30 $52.32 $4.50 $24.00 $25.34 $337.39 $135.00 $70.00 $93.60 $3,300.00 $330.00 $5,232.49 $450.00 $2,400.00 $2,534.24 $33,738.93 $498.86 CWT $49,886.07 Planned Returns Above Variable Costs: Average Lamb Breakeven Price to Cover Variable Costs FIXED COSTS Quantity Depreciation - Equipment 1 Depreciation - Livestock 1 Equipment Investment $1,546.32 Pasture Cost 30 Total Fixed Costs Total Costs Planned Returns to Management, Risk, and Profit: Average Lamb Breakeven Price to Cover Total Costs $56.97 Units AU AU dollars Acres $/Unit $57.50 $15.00 6.50% $8.00 $167.11 Total $57.50 $15.00 $100.51 $240.00 $413.01 $750.40 $85.85 CWT Enterprise Total $5,750.18 $1,500.00 $10,051.11 $24,000.00 $41,301.29 $75,040.22 $8,584.78 Sensitivity Analysis for Example Example Weaning Percent 140% 130% 120% 110% 100% Example Gross Sales per Animal Unit $955.00 $895.63 $836.25 $776.88 $717.50 Pounds Produced per AU 581 550 519 487 456 Example Breakeven Lamb Pay Weight to Cover Total Cost 55 60 66 73 82 Example Male Lamb Price Example Female Lamb Price Example Weighted Average Lamb Price ($/cwt) Example Average Break Even Price to Cover Total Cost $143.23 $154.25 $167.11 $182.30 $200.53 $190.00 $190.00 $190.00 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.