18
2002 EWE AND LAMB BUDGET
Early Lambing
		ITEM			QUANTITY/UNIT			PRICE PER		AMOUNT			YOUR
								UNIT					BUDGET
										125%	150%
										lamb crop
RECEIPTS
	Lambs 1				156	188	lb	$0.70	/lb	$109	$131
	Wool Sales 2
			Ewe			8	lb	0.35	/lb	2.80	2.80
			Lamb	25%	lambs shorn	4	lb	0.10	/lb	0.13	0.15
	Cull Ewe and Ram 3
			Ewe	16%	cull rate - death rate	150	lb/ ewe	30.00	/cwt	7.20	7.20
			Ram	25%		200	lb/ ram	30.00	/cwt	0.43	0.43
TOTAL RECEIPTS										120	142
VARIABLE COSTS
	Feed 4
	Lambs
		Corn			5.5	6.6	bu	2.30	/bu	13	15
		Alfalfa Hay			0.027	0.032	ton	125	/ton	3	4
		Soybean Meal			29	35	lb	0.10	/lb	3	4
		Minerals			7	8	lb	0.20	/lb	1	2
	Ewes
		Corn			5.5	6	bu	2.30	/bu	13	14
		Hay			0.27	0.27	ton	65	/ton	18	18
		Pasture (hay eq.)			0.36	0.36	ton	20	/ton	7	7
		Salt and Mineral								2	2
TOTAL FEED COSTS										60	65
	Health Program									6	6
	Marketing				1.40	1.70	head	2.50	/head	4	4
	Shearing				1.30	1.40	head	2.00	/head	3	3
	Util., Supp, and Misc.									3	3
	Int. on Operating Expense 5				$41	$44	12 mo.	9	%	4	4
TOTAL VARIABLE COSTS										79	85
FIXED COSTS
	Labor Charge					4	hours	8.00	/hr	32	30
	Ewe Replacement 6									20	20
	Ram Replacement 7									3	3
	Int. on Breed Stock 8					$70		9	%	6	6
	Equipment Charge 9					$30		17.6	%	5	5
	Buildings Charge 10					$50		14.7	%	7	7
	Management Charge					5% of gross				6	7
TOTAL FIXED COSTS										80	79
TOTAL COSTS										159	164
			RETURN OVER VARIABLE COSTS				Lambs @	$60		$15	$27
								$70		$31	$46
								$80		$46	$65
			RETURN OVER TOTAL COSTS				Lambs @	$60		($64)	($51)
								$70		($49)	($33)
								$80		($34)	($15)
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. Cull rate: ewes=20% and rams=35%.  Death rate: ewes=4% and rams=10%.
	1 ram assumed to be used for every 35 ewes.
4. Feed includes ewe maintenance, gestation, and lactation requirements + lamb requirements and 50 lb. creep feed.
5. Includes ½ value of feed plus other variable expenses less marketing.
6. Ewe replacement cost based on 20% annual replacement 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.
9. $30 investment X 20% = $6
10. 10 ft2 per ewe @ $5/ft2 = $50 X 17% = $9