UNL-Meat Goat Budget Tool
Version: 2021-04-01
INTRODUCTION
FOR MORE INFORMATION:
Daniel Gertner, Graduate Student, Department of Agricultural Economics, University of Nebraska – Lincoln
Elliott Dennis, PhD, Department of Agricultural Economics, University of Nebraska – Lincoln
Randy Saner, Lincoln-Logan-McPherson County Extension, University of Nebraska-Lincoln
Glennis McClure, Department of Agricultural Economics, University of Nebraska-Lincoln
ACKNOWLEDGEMENTS:
The authors would like to thank the Nebraska Sheep and Goat Producers
Association members and the Nebraska Meat Goat Producers for
assistance in developing this budget information.
An Excel spreadsheet for evaluating the value of potential meat goat production
revenue, expenses, and profitability
The University of Nebraska - Lincoln meat goat budget tool was developed to help producers determine the value of goat production. This tool is
NOT intended to represent any one operation but rather market prices and average costs estimates. Each individual operation should adjust key
inputs and local market prices to reflect their own situation.
Developed by:
UNL-Meat Goat Budget Tool
Version: 2021-04-01
Budget Instructions
(3) Instead, input numbers directly into "Production Parameters", "Revenue", "Expenses - Variable", "Expenses - Fixed", "Non-Farm Adjustments", and "Taxes" tabs.
(4) Only input numbers and data into the yellow cells. Other numbers will automatically calculate and fill.
(2) DO NOT input numbers directly in the "Summary Budget" tab.
An Excel spreadsheet for evaluating the value of potential meat goat production
revenue, expenses, and profitability
(1) The "Summary Budget" tab includes total income, total costs, and net revenue, plus breakeven calculations.
Introduction
The University of Nebraska-Lincoln Department of Agricultural Economics Extension and Outreach program has developed sheep and goat budget
templates for use by producers in Nebraska. The budget templates contain an interface in which producers can customize production parameters
to their specific operations. Enterprise budgets can serve as a useful guide for producers as they make management decisions.
How to Use
Both the sheep and goat production budgets are organized identically and are designed to operate in the same way. The budgets include:
1) Instructions – Provides instructions for how to navigate the spreadsheet.
2) Summary Budget – Includes total income, variable cost, fixed cost, and breakeven calculations.
3) Production Parameters – Contains customizable general flock, feed, and asset value information.
4) Revenue – Contains a breakdown of the revenue components of sheep/goat production.
5) Expenses -Variable – Includes a breakdown of production expenses that vary from year-to-year.
6) Expenses - Fixed – Includes a breakdown of fixed and overhead expenses.
7) Taxes – Contains common taxes paid by sheep/goat producers.
8) Non-Farm Adjustments – Contains sources of other on and off-farm income that producers may include in their sheep or goat budgets.
To use, please follow the following guidelines:
The “Summary Budget” tab summarizes totals from the various budget worksheets or tabs.
Worksheet users should input numbers directly into the yellow highlighted cells in the “Production Parameters”, “Revenue”, “Expenses –
Variable”, “Expenses – Fixed”, “Non-Farm Adjustments”, and “Taxes” tabs.
Methods
The market prices, average cost estimates, and production parameters outlined in the budget are obtained through input from producers.
First, sample production budgets from Nebraska sheep and goat producers were reviewed.
Second, a sample production budgets were built using data provided by the producers.
Third, the budget template and figures were presented at the annual Nebraska sheep and goat producer meetings.
Fourth, adjustments were made to the budgets according to producers’ comments. Fifth, final production budgets were assembled.
Assumptions
Several assumptions were made in an effort to create a sheep budget representative of average operations. A few of the key assumptions are:
Goat Budget
• Herd Size: 70 does
• Kids Born: 105 head/year
• Kids Weaned: 93 head/year
• Kid Weaning Weight: 45 pounds
• Kids Sold at Weaning: 25 head/year
• Total Kids Finished: 66 head/year
Conclusion
The University of Nebraska-Lincoln sheep and goat budget templates were developed to help producers project the value of sheep production
and net revenue. This tool is not intended to represent any one operation, but rather to reflect production rates, market prices, and average cost
estimates. Each individual operation should adjust key inputs and local market prices to reflect their own situation.
Total Per Kid
Revenue Total Annual Revenue Per Kid Sold Revenue
Buck-Related Sales 213.33$ 3.05$
Doe-Related Sales 800.00$ 11.43$
Weaned Kid Sales 5,006.25$ 71.52$
Finished Kid Sales
Live Weight 16,315.20$ 233.07$
Carcass Weight 3,630.00$ 51.86$
Other Revenue -$ -$
Gross Revenue 25,964.78$
370.93$
Expenses - Variable
Total Annual Expenses - Variable Per Ewe Annual Expenses - Variable
Total Animal Purchases 2,000.00$ 28.57$
Total Feed Expenses 9,438.71$ 134.84$
Total Other Expenses 5,015.10$ 71.64$
Total Expenses - Variable 16,453.81$
235.05$
Expenses - Fixed Total Annual Expenses - Fixed Per Ewe Annual Expenses - Fixed
Total Annualized Fixed Expenses 7,520.72$ 107.44$
Total Overhead and Fixed Expenses 500.00$ 7.14$
Total Expenses - Fixed & Overhead 8,020.72$ 114.58$
Taxes Total Annual Taxes Per Ewe Taxes
Total Taxes 360.00$
5.14$
Total Expenses (Variable + Fixed + Taxes) 24,834.52$ 354.78$
Net Revenue (Loss) 1,130$ 16.15$
Non-Farm Adjustments Total Annual Adjustments Per Ewe Adjustments
Total Non-Farm Adjustments -$ -$
Grand Total Revenue (Loss) 1,130$ 16.15$
Breakeven Prices
Breakeven Price ($/lb) Sale Price Above Breakeven ($/lb) Breakeven Price Calculations Explanation
Weaned Breakeven Prices
Weaned Kid Breakeven Price ($/lb) Live Weight 5.61$ (1.16)$
All expenses (excluding finishing expenses) divided by total weight of weaned kids.
Finishing Breakeven Prices
Finished Kid Breakeven Price ($/lb) Live Weight 4.70$ (0.58)$
All expenses times percent sold by live weight divided by total finished kid lbs. sold by a live weight basis.
Finished Kid Breaken Price ($/lb) Carcass Weight 9.41$ (3.91)$ All expenses times percent sold by carcass weight divided by total finished kid lbs. sold by a carcass weight basis.
Annual Meat Goat Budget Summary
General Herd Information General Feed Information
Quantity
Units
Does
Price per Unit
Purchased
Unit
Fed
Unit
Fed Unit per
Purchased Unit
As Fed
Price
Herd Size 70 does Feed
Does Culled Per Year 5 does Prairie Hay 100.00$ ton pounds 2000 0.05$
Doe Deaths Per Year 5 does Alfalfa Hay 150.00$ ton pounds 2000 0.08$
Cull Doe Sale Weight 100 pounds Salt & Mineral 0.63$ pound pounds 1 0.63$
Replacement Does Purchased 10 Pasture 43.00$ AUM AUM 1 43.00$
Raised Replacement Does 0 head/year Corn 5.50$ bu pounds 56 0.10$
Kidding Rate 1.5 kids per doe Creep Feed for baby kids 0.22$ day day 1 0.22$
37% protein finishing supplement 10.00$ bag pounds 50 0.20$
Bucks
Bucks Needed 2 ram(s)
Buck Use (Years) 3 years
Fixed Asset Values
Buck Death Loss Rate 1%
Cull Buck Sale Weight 200 pounds Quantity Units
Replacement Bucks Purchased 1 head/year Land
Raised Replacement Bucks 0 head/year Grazing Land 87 acres
Stocking Density 4 does per acre
Kids
Kids Born 105 head/year
Kid Death Loss Rate (Pre-Weaning) 11.3% Buildings / Barn
Current Value 30,000.00$
Weaning Future/Salvage Value 10,000.00$
Kids Weaned 93 head/year Depreciable Life 25 years
Kids Sold at Weaning 25 head/year
Kids Weaning Weight 45 pounds
Fencing Posts
Feeding Cost per post 6.00$ post
Days Fed 75 days Depreciable Life 10 years
Kid Harvest Weight 80 pounds
Average Daily Gain 0.47 pounds per day Total Fence Posts 1298 posts
Kid Death Loss Rate (Post-Weaning) 3.2% Total Post Cost 7,786.87$
Replacement Kids purchased 0 head/year
Total Kids Finished 66 head/year Fencing Panels
Panel Length 6 feet
Marketing Cost per panel 25.00$ panel
Carcass Yield 50% Depreciable Life 10 years
Percent of finished kids sold Live 75%
Percent of finished kids sold Carcass 25% Total Fence Panels 1297 panels
Total Panel Cost 32,420.29$
Finishing Kid Ration
Corn 75 lbs/kid
37% protein supplement 38 lbs/kid Machinery & Equipment Used for Enterprise
Prairie Hay 101 lbs/kid
As Fed Intake 2.85 lbs/kid/day Current Value 30,000.00$
Future/Salvage Value 15,000.00$
Depreciable Life 10 years
Gross Revenue 25,964.78$
Revenue
Quantity Units Price Per Unit Total Revenue
Buck-Related Sales
Cull Buck Sales 1.3 cwt 160$ cwt 213.33$
Doe-Related Sales
Cull Doe Sales 5.0 cwt 160$ cwt 800.00$
Finishing-Related Sales
Weaned Kid Sales 11.25 cwt 445$ cwt 5,006.25$
Finished Kid Sales
Live Weight 39.6 cwt 412$ cwt 16,315.20$
Carcass Weight 6.6 cwt 550$ cwt 3,630.00$
Other Finishing Sales units unit
Other Finishing Sales units unit
Other Revenue
Other Revenue units unit -$
Other Revenue units unit -$
Other Revenue units unit -$
Gross Revenue 25,964.78$
Total Expenses - Variable 16,453.81$
Animal Purchases
Quantity Units Price Per Unit Annual Variable Costs
Replacement Does Purchased 10 head 160$ head 1,600.00$
Replacement Buck Purchased 1 head 400$ head 400.00$
Weaned Kids (Purchased) head head
Other Animal Purchases
Other Animal Purchases unit unit
Other Animal Purchases unit unit
Other Animal Purchases unit unit
Total Animal Purchases 2,000.00$
Feed Expenses
Quantity per
Animal per
Year
Units Price Per Unit Annual Variable Costs
Buck Feed
Prairie Hay 1200 pounds 0.05$ pounds 120.00$
Alfalfa Hay 0 pounds 0.08$ pounds
Salt & Mineral 0 pounds 0.63$ pounds
Pasture 1 AUM 43.00$ AUM 86.00$
Corn 392 pounds 0.10$ pounds 77.00$
Other units pounds
Doe Feed
Prairie Hay 240 pounds 0.05$ pounds 840.00$
Alfalfa Hay 240 pounds 0.08$ pounds 1,260.00$
Salt & Mineral 9.6 pounds 0.08$ pounds 50.40$
Pasture 0.85 AUM 43.00$ AUM 2,558.50$
Corn 370 pounds 0.10$ pounds 2,543.75$
Other units pounds
Pre-Weaning Kid Feed
Prairie Hay pounds 0.05$ pounds
Alfalfa Hay 72 pounds 0.08$ pounds 502.93$
Creep Feed for baby kids 4.02 pounds 0.22$ day 82.37$
Corn pounds 0.10$ pounds
Other units pounds
Replacement Feed
Prairie Hay pounds 0.05$ pounds
Alfalfa Hay pounds 0.08$ pounds
Salt & Mineral pounds 0.63$ pounds
Corn pounds 0.10$ pounds
Other units pounds
Finishing Kid Feed
Prairie Hay 102 pounds 0.05$ pounds 336.60$
Alfalfa Hay pounds 0.08$ pounds
Salt & Mineral pounds 0.63$ pounds
Corn 75 pounds 0.10$ pounds 486.16$
37% protein finishing supplement 37.5 pounds 0.20$ pounds 495.00$
Other pounds pounds
Other pounds pounds
Other Feed Expenses
Other Feed Expenses unit unit
Other Feed Expenses unit unit
Other Feed Expenses unit unit
Total Feed Expenses 9,438.71$
Other Variable Expenses
Number of
Animals
Animal Price
Per
Animal
Annual Variable Costs
Marketing Expenses
Cull Buck Marketing bucks 7.00$
per buck
Cull Doe Marketing
5
does 7.00$
per doe
35.00$
Finished Kid Marketing
66
kids 7.00$
per kid
462.00$
Weaned Kid Marketing
25
kids 7.00$
per kid
175.00$
Sale Barn
Transportation to Barn
Other Marketing Expenses units
per unit
Risk Management Expenses
Pasture, Rangeland, & Forage Insurance 66 kids 0.60$ per kid 39.60$
Livestock Revenue Protection Insurance 66 kids per kid
Additional Marketing & Hauling 91 kids 5.00$ per kid 455.00$
Other Risk Management Expenses units per unit
Predator Control
Dog Food 66 kids 7.00$ per kid 462.00$
Additional Predator Control 66 kids 1.80$ per kid 118.80$
Other Predator Control units unit
Repair Expenses
Housing Improvement & Repairs 70 does 17.14$ per doe 1,200.00$
Machinery, Equipment, Vehicle Repairs 70 does 10.00$ per doe 700.00$
Fencing Repairs 70 does 7.14$ per doe 500.00$
Other Repairs 70 does per doe
Other Variable Expenses
Labor - Hired 10 days 25.00$ per day 250.00$
Hauling 120 miles 1.60$ per mile 192.00$
Veterinary and Medical 66 kids 5.00$ per kid 330.00$
Supplies 66 kids 1.45$ per kid 95.70$
Other Variable Expenses units per unit
Other Variable Expenses units per unit
Other Variable Expenses units per unit
Total Other Expenses 5,015.10$
Total Expenses - Fixed & Overhead 8,020.72$
Annualized Fixed Expenses
Value Per Unit
Annualized Fixed
Expenses
Annualized Fencing Expenses (Depreciation)
Buildings /Barn 11.43$ per doe 800.00$
Fence Posts 11.12$ per doe 778.69$
Fence Panels 46.31$ per doe 3,242.03$
Machinery & Equipment Used for Enterprise 21.43$ per doe 1,500.00$
Other Annualized Expenses
Other Annualized Fixed Expenses -$ per doe
Other Annualized Fixed Expenses -$ per doe
Other Annualized Fixed Expenses -$ per doe
Opportunity Interest Expense 17.14$ per doe 1,200.00$
Total Annualized Fixed Expenses 7,520.72$
Other Expenses: Fixed and Overhead
Price Per Unit
Overhead and Other
Fixed Expenses
Overhead Expenses 1
Overhead Expense 7.14$ per doe 500.00$
Other Fixed Expenses
Land Rent -$ per doe
Other Fixed Expenses -$ per doe
Other Fixed Expenses -$ per doe
Total Overhead and Fixed Expenses 500.00$
Total Taxes 360.00$
Taxes
Unit Price Per Unit
Annual Tax Expenses
Taxes
Real Estate Tax
180.00$
Personal Propety Taxes 180.00$
Total Taxes 360.00$
Total Non-Farm Adjustments
-$
Non-Farm Adjustments
Quantity Units Price Per Unit
Total Adjustment
Revenue
Off-Farm Wages
Custom Feeding units per unit
Custom Bailing units per unit
Custom Grazing units per unit
units per unit
units per unit
units per unit
Off-Farm Income
Off-Farm Income
Off-Farm Income
Other Non-Farm Adjustments
units per unit
units per unit
units per unit
units per unit
Total Non-Farm Adjustments -$
