Margali's Griffin Wood Ranch

[Margali]

You cannot divide the costs by only the 4 ram lambs to sell. Any ewe lambs have value... If you keep them, then they are not generating income at that point, but they have to be figured into the value charged against the ewes. It is no different than if you went out and bought replacements. So, if you take the 2,100 and divide by 7, the total that the rams need to bring is $300 to make it a $0 cost against the ewes costs for the year. You have to also figure in feeding those retained ewe lambs until they provide a lamb/s... and they become a productive part to "pay the bills"..

That is why I shouldn't try to do math past midnight. $300 is MUCH more reasonable.

The cost of raising ewe lambs until first lambs is expense but recorded as their cost basis on inventory sheet. So if I sell later as brood stock, I know profit/loss number.

 

[Margali]

The sheep are not enjoying the rain.

 

[Mini Horses]

Aha...much like goats! You know the rain is coming as they stampede the barn

 

[Ridgetop]

The cost of raising ewe lambs until first lambs is expense but recorded as their cost basis on inventory sheet. So if I sell later as brood stock, I know profit/loss number.

First, as @farmerjan said, you cannot figure the cost of the infrastructure i.e. fencing, barns, water lines, etc. into your calculations for gross/net profit or loss. The infrastructure stays with the farm property. You can take depreciation on it against income including non-farm income.

To determine the amount of $ in each animal you produce, you figure the annual cost of the feed for the 7 ewes and ram and add any individual costs of worming and vaccines. Don't forget when doing your taxes to allow extra for water since even if you have a well you have to use electricity to pump the water.

Use the feed amount - $1836 - and divide by the number of sheep you have which is 8(?). That gives you an annual cost per sheep of approximately $230.

You have 7 lambs to sell. Three are registered ewe lambs (once you send in the papers) and more valuable as breeding stock than the registered rams. It sounds crazy but considering most sheep produce a ewe and a ram in a set of twins, registered ewes are more valuable. One ewe produces 2 lambs each lambing, while one ram can make a lot of lambs. Figure what you paid for each of your registered ewes as lambs and assign that value to each of the 3 ewe lambs. Let's assume you paid $600 each for the registered ewes and assign that value to the ewe lambs. You have now produced $1800 worth of registered ewe lambs for the cost of $1836 in feed. That is a mere $36 loss and you still have 4 ram lambs left to sell.

At $150 minimum auction price x 4 = $600, less the auction commission and yardage, giving you an approximate $540 profit ON PAPER. Deduct the $36 overage left on feed and you have a profit of $500. If you have buyers for registered Katahdin ram lambs, you can sell them for more $ raising your profit level. You can also sell registered ewes. Registered ewes will usually sell for more than a registered ram, unless it is out of well-known bloodlines or a well-known breeder. Then you are paying for the name. It pays to investigate bloodlines and study the standard because you can get excellent rams without having to pay a fortune.

But remember that you cannot price your lambs at what you need to break even on your expenditures since you can only ask what the market will bear. Priced too high and they will not sell.

 

[SageHill]

I'm going to be better this year (and so far am) at keeping track of $$ in and out (rather than put in the basket as I have been). I've used @Baymule 's method pretty much until now (and still may). With whatever is left at the end of the year to be used on something I want/need. Last year it was the tilt chute. I include the $ from all the dog training - I know that shouldn't be part of the equation - but it is in the same basket.
It's a good thing I'm not a Nordstum's kinda gal.

 

[Ridgetop]

Actually, you can use the dog training and the sheep business together. Remember to keep track of all expenses for both including mileage for dog events. Yu don't have to enter every expense at the time it is made, as long as you keep a box into which you toss all receipts. We also use our credit card which simplifies things since I go over it every month and mark all the applicable entries. Then when I have time I compare the charges to the receipts and transfer them into my expense journal. When we are on the road I have a special folder for all receipts and mileage. It is actually a divided coupon holder. Works great.

 

[Margali]

I have 11 adults ( ram, wether, 8 ewes). I think the thing that is confusing me most is that lambing cycle and calendar year don't line up.

2023:
Feb & March- Sold 2022 lambs and had lambs born
March- Bought 6 ewes and ram
April 1st- Formed LLC
Nov & Dec- First 2 ewes lambed
2024:
Feb- Most of the ewes lambed
April- Start sales

So for understanding pricing do I do calc as I did on lambing year? Because I spent all my 2023 income from selling sheep as soon as I got it.

 

[Margali]

As far as pricing, a scrubby mixed ewe or meat on the hoof is $200 - $250. Worm city lady sold her registered animals for $350.

Good registered animals start at ~$500 for intermediate (~5yr) breeders. THE breeder in area, Mr Covington sells for $650+. So it sounds like my planned price point of $450 for registered stock is good and allows me to break even?

 

[Baymule]

You and I don’t have the name recognition. So we have to sell for less. But we can hit that sweet spot, it will take a little time to get there.

 

[Baymule]

As far as pricing, a scrubby mixed ewe or meat on the hoof is $200 - $250. WORM CITY LADY sold her registered animals for $350.

Good registered animals start at ~$500 for intermediate (~5yr) breeders. THE breeder in area, Mr Covington sells for $650+. So it sounds like my planned price point of $450 for registered stock is good and allows me to break even?

Worm city lady, give her ivermectin.