Extension/Research Information

Ohio Enterprise Budgets

Ohio State University Extension
Department of Agricultural, Environmental, and Development Economics
The Ohio State University

April 1999

1999 EWE AND LAMB BUDGET
Early Lambing

ITEM

QUANTITY

UNIT PRICE

AMOUNT

YOUR BUDGET

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Receipts
Lambs 1 156

188

 lb. $0.70 109

131
Wool 2 3

3
Cull Ewe and Ram3 8

8

----

----

TOTAL RECEIPTS - - - - 120

142

 - -
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Variable Costs
Feed 4
  Lambs
    Corn 5.5

6.6

 bu. 2.20 12

15
    Alfalfa Hay 0.027

0.032

 ton 125 3

4
    Soybean Meal 29

35

 lb. .08 2

3
    Minerals 6

7

lb. .20 1

2
  Ewes
    Corn 5.5

6.0

bu. 2.20 12

13
    Hay 0.27

0.27

ton 65.00 18

18

    Pasture (hay equiv.) 0.36

0.36

ton 20.00 7

7

    Salt and Mineral 2

2
------ -------
Total Feed Costs 58

63
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Health Program 6

6

Marketing 1.4

1.7

head 2.50 4

4

Shearing 1.3

1.4

head 2.00 3

3

Util., Supplies and Misc. 3

3

Int. On Operating Expenses 5 41

43

 12 mo. 9% 4

4

----

----

TOTAL VARIABLE COSTS - - - - 77

83

- -
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Fixed Costs
Labor Charge

4

hours 7.5 30

30

Ewe Replacement 6 20

20
Ram Replacement 7 3

3

Int. On Breeding Stock 8

$70

9% 6

6

Equipment Charge 9

$30

20% 6

6

Buildings Charge 10

$50

17% 9

9

Management Charge

5% of gross

6

7
----

----

TOTAL FIXED COSTS - - - - 80

81

 - -
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TOTAL COSTS - - - - 157

164

 - -
RETURN OVER VARIABLE COSTS

Lambs @

 $60 27 40
$70 43 59
$80 59 78
RETURN OVER TOTAL COSTS

Lambs @

 $60 (52) (40)
$70 (37) (22)
$80 (22) (5)

1. Lambs sold at 125 lb. 1.25 and 1.50 lambs sold per ewe.
2. Wool: 8 lbs/ewe + 4 lbs./lamb shearing 1/4 of all lambs. Ewe wool price is $0.35/lb. and lamb wool price is $0.10/lb.
3. 150 lb. ewes X (20% cull rate - 4% death loss) X $30/cwt = $7.20
200 lb. ram X (35% cull rate - 10% death loss) X $30/cwt @ 35 ewes/ram = $0.4
4 Feed includes ewe maintenance, gestation, and lactation requirements plus finishing lamb requirements and 50 lb. creep feed.
5.Includes ‡ value of feed plus other variable expenses less marketing.
6.Ewe replacement cost based on 16% annual rplacement rate, 4% death loss and cost of ewe of $85
(0.20+0.04) X $85 = $17
7. Ram replacement cost based on 25% replacement rate, 10% death loss, ram cost of $300, 35 ewes per ram.
{(0.25+0.10) X $300}/35= $3
8 Average value of breeding animals is $65 per ewe plus $5 per ram per ewe figured at cull value plus ‡ depreciable amount
9 $30 investment X 20% = $6
10 10 ft2 per ewe @ $5/ft2 = $50 X 17% = $9

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