The American Sheep Industry Association reported in June that it had retained the Livestock Marketing Information Center to build baseline estimates regarding the on-farm/ranch costs of producing sheep. The LMIC-assembled working group used best-estimate industry parameters to generate regionally representative budgets, which have also been aggregated on a national production budget.
Sheep production occurs across the United States and in a variety of ecological zones; economic costs of production reflect that diversity. Farm-level production costs and risk have increased in the last decade and needs to be described and evaluated including feedstuff costs, management practices, labor costs, predator losses, etc. The sheep industry includes several sectors, but the production sector is the foundation. The budget will be updated annually so trends in costs and returns, as well as overall profitability can be analyzed and published.
The Cost of Production Budget Worksheets are now available at www.sheepusa.org/ResearchEducation_OtherResearch_UsBaselineLambCostOfProductionModel