Projections for Planning Purposes Only -- Not to be Used without Updating 2016 Estimated Costs and Returns per Animal Unit Commercial Sheep, Wool/Lamb Production, 5 Head per AU - 500 Ewes West Central Extension District - 7 Animal Units (AU) Breeding Females 100 500 REVENUE Head Lambs - Wether Lambs - Ewe Cull Ewes Cull Rams Lambs - Ewe Wool, 20.6-22.0 Mic Total Revenue 2.250 1.250 1.000 0.050 0.000 5.000 VARIABLE COSTS Production Costs Miscellaneous Supplies Predator Control - Sheep Brush Control PRF Rainfall Ins Tag Sheep Commerical Shear Sheep 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 Fendendazole drench 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 0.00 8.00 262.5 406 143.5 Quantity Units CWT CWT CWT CWT CWT Pound $/Unit $190.00 $190.00 $86.00 $90.00 $190.00 $1.76 Total $320.63 $178.13 $116.10 $7.65 $0.00 $70.40 $692.90 Enterprise Total $32,062.50 $17,812.50 $11,610.00 $765.00 $0.00 $7,040.00 $69,290.00 Units $/Unit Total Enterprise Total 5 Head 5 Head 30 Acre 30 Acre 5 Animal Unit 5 Head 1.00 AU $3.00 $2.10 $1.00 $0.85 $1.90 $3.25 $20.81 $15.00 $10.50 $30.00 $25.50 $9.50 $16.25 $20.81 $1,500.00 $1,050.00 $3,000.00 $2,550.00 $950.00 $1,625.00 $2,081.45 135 300 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 46 1.0 10.0% 1 0.60 1.00 Dose Dose ML ml AU Percent AU Hours AU $0.27 $0.14 $0.04 $0.10 $33.00 $33.00 $52.32 $15.00 $24.00 6.50% $1.35 $0.70 $0.94 $4.60 $33.00 $3.30 $52.32 $9.00 $24.00 $26.32 $366.50 $135.00 $70.00 $93.60 $460.00 $3,300.00 $330.00 $5,232.49 $900.00 $2,400.00 $2,631.74 $36,650.18 $326.40 CWT $32,639.82 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 $65.66 Units AU AU dollars Acres $/Unit $57.50 $15.00 6.50% $8.00 $223.00 Total $57.50 $15.00 $100.51 $240.00 $413.01 $779.51 ($86.61) CWT Enterprise Total $5,750.18 $1,500.00 $10,051.11 $24,000.00 $41,301.29 $77,951.47 ($8,661.47) Sensitivity Analysis for Example Example Weaning Percent 110% 100% 90% 80% 70% Example Gross Sales per Animal Unit $803.73 $748.32 $692.90 $637.48 $582.07 Pounds Produced per AU 464 435 406 377 348 Example Breakeven Lamb Pay Weight to Cover Total Cost 68 77 88 103 123 Example Male Lamb Price Example Female Lamb Price Example Weighted Average Lamb Price ($/cwt) Example Average Break Even Price to Cover Total Cost $182.45 $200.70 $223.00 $250.87 $286.71 $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.