Critique my basic sheep financials

[bikergirl]

As per title. Basic calculations based upon inputs i can think of off the top of my head. Based upon purchasing 30 Easycare/Exlana ewe lambs in Year 1 and run as low input as possible in SW England. Retaining ewe lambs where necessary to replace culls/fallen stock. I have not priced in depreciation based upon culls making the same price ewe lambs were bought in for initially. Anything that does not lamb Year 1 will be culled. Number of lambs reared, culled & fallen stock are obviously approximates but hopefully i'm not too far out.

Other things to note:

• Land rent includes all maintenance
• Two large freshly dug ponds which do not dry up over summer
• Plenty of tree/hedge cover for shelter
• I live and work on farm so diesel costs would be minimal (forgot to include)
• This would be a hobby so labour costs have not been included
• I have access to trailer, handling equipment, etc when necessary
• Could lamb indoors however this would increase costs
• Ewes are shedding so no need for shearing
• I have removed some costs in Year 2 e.g. foot clippers, iodine, however i accept these would need to be replaced/purchased again down the line.

Obviously a very small operation which is not scaleable and currently completely theoretical. What other real costs have i forgotten to include? What changes should be made?

I've read through the previous cost of production threads so i have my popcorn at the ready.

TIA

 

[Happy at it]

What price is put on your time spent looking after them?

 

[andyt87]

What price is put on your time spent looking after them?

He said he's doing it as a hobby so no labour cost allocated

 

[Humble Village Farmer]

Rent's too high

 

[bikergirl]

What price is put on your time spent looking after them?

This would predominately be a hobby so labour hasn't been costed for. However, even if you did cost it at say £15/hour, this gives 130 odd hours of actual shepherding (rounding them up 6-8 times a year + lambing) which seems plenty sufficient? That would come out at £2,000 which would be just under the average profit. Field is adjacent to where i'm living and in the centre of the farm so time spent checking stock can sort of be disregarded as the dogs still need a run and i am passing numerous times a day anyway.

 

[bikergirl]

Rent's too high

I agree however when you cost in access to equipment it seems pretty fair. I wouldn't be able to do it if i had to buy all the equipment myself for such a small flock.

 

[neilo]

Rent's too high

For ground the doesn’t require fencing and can keep 3.5 ewes/ac year round without any inputs, presumably finishing all lambs?

I’d suggest it was incredibly cheap!

 

[WelshSheep]

small point but in year one and two you have a 5% rate for losses resulting in 1.5 sheep, to my knowledge its not possible to keep half a lamb alive so this ought to be two and culls 5 rather than 4.5
i do not think you will be able to sell half a sheep as a cull. but not bad! the other point would be that a 5% loss rate in lambs is in theory, in reality more like 10%, but again the small flock size will throw this, you may not loose any, but loses will be binary.

 

[neilo]

Only just looked through year two.
1.If you cull the empties from year one, you need to account for replacements if you want to maintain flock size. Even if you’re keeping your own, it reduces lamb sales.

2. I would suggest that your are being overly optimistic with your % lambs reared, your lamb losses and probably your cull ewe value.

 

[CopperBeech]

Buying ewe lambs in and culling empties seems a bit silly!

 

[CopperBeech]

And ewe and ram price out of date!

 

[Bald Rick]

Not enough deaths in the budget.

and Easycares hate indoor lambing

 

[bikergirl]

small point but in year one and two you have a 5% rate for losses resulting in 1.5 sheep, to my knowledge its not possible to keep half a lamb alive so this ought to be two and culls 5 rather than 4.5
i do not think you will be able to sell half a sheep as a cull. but not bad! the other point would be that a 5% loss rate in lambs is in theory, in reality more like 10%, but again the small flock size will throw this, you may not loose any, but loses will be binary.

I was going to address this but thought i would leave it at a percentage then update it to actual figures as and when. Thanks for your input, i'll update lamb loss rate to 10%.

 

[Estate fencing.]

And ewe and ram price out of date!

Massively way out on the value of stock, don’t buy much of tup for £500 let alone £250. Same a gimmers, I would put them in at £170.

 

[bikergirl]

Only just looked through year two.
1.If you cull the empties from year one, you need to account for replacements if you want to maintain flock size. Even if you’re keeping your own, it reduces lamb sales.

2. I would suggest that your are being overly optimistic with your % lambs reared, your lamb losses and probably your cull ewe value.

I have removed any replacements from the sales numbers although this might not be clear! I'll update spreadsheet and adjust where necessary. What rearing percentage would you expect from a small flock of ewe lambs such as this? Percentages were gathered online as the farms existing sheep operations (again, small) aren't recorded.

 

[bikergirl]

Buying ewe lambs in and culling empties seems a bit silly!

My thought was that i would address any low fertility early, especially with bought in sheep. I can see it would be abit rash in a commercial operation but on something this size it won't affect me too much.

 

[Estate fencing.]

What about the costs of fallen stock. Cost me £15/ewe, £12/lamb and £15/bag of lambs to take them to kennels plus 40 mins and a gallon of fuel.

 

[bikergirl]

For ground the doesn’t require fencing and can keep 3.5 ewes/ac year round without any inputs, presumably finishing all lambs?

I’d suggest it was incredibly cheap!

Land gets poultry muck once a year (more to get rid of the muck heap than fertilise the land). Hasn't had any sprays or fert in years. I didn't want to reduce stocking rate less than 3 ewes/acre in order to avoid any problems lambing. Would you say 3 ewes/acre is too optimistic to finish all lambs on?

 

[bikergirl]

Massively way out on the value of stock, don’t buy much of tup for £500 let alone £250. Same a gimmers, I would put them in at £170.

Cheers I’ll update and add diesel. Didn’t think easycare gimmers would be as strong money. Priced them up low in the sales section as a worst case scenario but I’ll up the prices of buying in ewe lambs & decent ram.

Anything else missing? Rather get it all priced up now than after the fact.

 

[CopperBeech]

And ewe and ram price out of date

My thought was that i would address any low fertility early, especially with bought in sheep. I can see it would be abit rash in a commercial operation but on something this size it won't affect me too much.

just run dry and sell as a shearling, and make a profit not a loss. But getting ewe lambs in lamb is a bit of an art. So could find yourself culling half your sheep at a loss in year one.