Can You Make Money with a Small Flock (or Herd)?

SUSAN SCHOENIANSheep & Goat SpecialistUniversity of Maryland Extensionsschoen@umd.edu – sheepandgoat.com

What is a small flock (herd)?

• 10?

• 30?

• 50?

• 100?

• 200?

• 500?

• 1000?

• 2000?

What is making money?

• Agricultural land (tax) assessment.

• Tax-write off (depreciation)

• Sales tax exemption.

• Covering feed costs

• Money for children’s college education.

• More income than expenses (cash)

• Schedule F profit

• Return to labor and managementHow much is enough?

• Return on investmentHow much is enough?

Tips for making money with a small flock or herd

1. Manage feed costs

2. Select and breed efficient sheep and goats.

3. Effective marketing.

4. Manage your flock or herd like a business.

Manage feed costs

• Feed is the single largest cost in a sheep and goat enterprise.

• Pasture is not FREE!

• You can’t fix what you don’t measure.

– How much does it cost you to feed a ewe or doe for the year?

– How much does it cost you to feed a lamb or kid to market weight? What is the cost of gain?

– Are you selling market animals at the most profitable weight(s)?

Manage feed costs

• Maximize use of forage.

• Buy and feed by weight.

• Learn how to balance simple low-cost rations.

• Supplement what forage diet is deficient in.

• Shop around for feed ingredients.

• Consider alternative feeds

• Feed whole grains.

• Invest in feed storage.

• Minimize feed wastage.

There are two kinds of feed costs.

Purchased or harvested • Hay• Grain• By-product feedstuff• Minerals, vitamins• Feed additives• Milk replacer

Pasture and browse• Seed• Fertilizer• Lime• Chemicals• Machine work• Fencing• Watering

Maximize pasture resource

• Soil test

• Lime and fertilize

• Maintain mixed swards

• Control “weeds”

• Implement rotational grazing system

• Extend grazing season

• Pasture renovation

• Plant annuals

• Sacrifice field/lot

• Strategic supplementation.

Feed balanced rations

• Nutrient requirements vary by species, size, age, and stage and level of productivity/performance.

• Feed to meet, but not exceed, requirements.

• Animals require nutrients, not specific feedstuffs.

• Animals require amounts, not percentage of nutrients.

• Divide animals into production groups for proper feeding.

Learn how to balance simple rations.

• Weigh animals and feed.

• Nutrient requirements are based on size (weight) of animal.

• Need to know how much animals are eating and how much they are wasting.

• Need to know nutrient composition of feeds.

– Can use book values or feed tags for some feeds.

– Should have forages and by-product analyzed, as their nutrient content can vary.

Ration balancing

• Rations are usually balanced for energy (TDN), protein (CP), calcium (Ca), and phosphorus (P).

• They can be balanced for other micronutrients.

• Can balance by hand, use a spreadsheet, ration balancing software, or web site.

http://www.sheepandgoat.com/rationsoftware

Feed least cost rations

• Shop around for feed ingredients.

• Buy by weight or know cost per lb. or ton.

– $5/bale$333/ton for 30 lb. bales$250/ton for 40 lb. bales$200/ton for 50 lb. bales

• Compare feed cost on basis of supplying certain nutrient.– Cost of energy– Cost of protein– Cost of minerals

• Compare ingredients of commercial products.– Bagged feeds– Mineral mixes– Nutritional tubs

Balance feed costs with labor• The most expensive way to

provide nutrients is via nutritional tubs and blocks.But they save labor!

• There can be substantial waste when feeding round bales, especially without well-designed feeders.But it reduces labor!

• When given free access to feed, ewes (especially) and does will eat more than they need.But it reduces labor!

• If you put lambs and kids on self-feeders, they will eat more and have reduce feed efficiency (feed/gain).But it reduces labor!

Feed whole grains

• Once lambs and kids have functioning rumens, they are able to process whole grains.

• There is no benefit to processing grains for small ruminants.

• Some whole grains will pass through digestive system, but loss is minimal.

• There are less digestive upsets with whole grain.

• Feed efficiency is improved with whole grain feeding.

• No forage source is necessary when feeding whole grains to growing/finishing lambs (goats?).

• You can balance simple, cost-effective rations utilizing whole grains, forages, and supplements.

Consider alternative feeds

• Soyhulls and corn gluten are good sources of highly digestible fiber.

• Distiller’s grains are a good source of energy and protein.

• When feeding alternative feeds, need to consider nutrient composition, storage, quality factors, and nutrient imbalances.

• Compare cost to supply nutrient(s), alternative feed vs. traditional feedstuff.

Invest in feed storage

• You can reduce feed costs considerably by purchasing feedstuffs in bulk quantities.

• It doesn’t take a large flock or herd to justify the cost of a bin or other feed storage.

• Improperly stored or covered hay deteriorates rapidly in quality.

• Storage gives you flexibility in your feeding program.

Minimize feed wastage

Properly designed feeders Don’t overfeed

Select and raise efficient livestock

• Are your breeds appropriate for your environment, production system, and intended markets?

• Are you using breeds in their appropriate roles?

• Are you culling unproductive, unprofitable females?

• Are you recording performance and using records to select your replacements?

• Are you buying and using genetically superior males?

• Are your yearlings the best animals in your flock?

What is your percent lamb/kid crop?

• Percent lamb and kid crop is the primary factor affecting profitability of the sheep and goat enterprise.

• Percent lamb/kid crop =Number of females exposed ÷Number of offspring marketed(or kept for replacement)

• ASI has made increasing the reproductive efficiency of the US flock a priority and has created 12 fact sheets focused on increasing the lamb crop.

Best management practices to increase your lamb crop

1. Accelerated lambing cycles2. Breeding ewe lambs at 7 to 9 months 3. Disease prevention and treatment4. Optimal nutrition5. Select for prolific genetics6. Manage for seasonal changes in reproduction7. Match reproduction to management8. Reduce lamb loss9. Select for prolific genetics10. Test for pregnancy status11. Test rams for breeding soundness12. Use crossbreeding

http://lambresourcecenter.com/production-resources/best-practice-resources/

Effective marketing

• Market lambs and kids at the most profitable weights and times.– Know when demand is highest– Learn what kind of animals your

market wants.

• Reduce or eliminate middlemen.

• Add value to what you’re selling– Meat– Fiber– Dairy– Breeding stock

• Aim for highest net price not necessarily highest price, as different marketing options have different costs associated with them.

Manage your flock or herd like a business.

• Know your cost of production.– Cost of maintaining female for one

year– Cost of growing/finishing

lambs/kids for market– Most profitable weight to sell

lambs and kids.– Cost per unit (milk, cheese)

• Calculate break even

• Calculate benchmarks– Percent lamb/kid crop– Pre-weaning losses– Post-weaning losses

• Identify areas for improvement

• Don’t be afraid to spend money to make money.

Now, let’s see if we can make money raising sheep or goats on paper.

http://www.sheepandgoat.com/spreadsheets

Thank you for your attention.Questions? Comments?

SUSAN SCHOENIANSheep & Goat SpecialistUniversity of Maryland Extensionsschoen@umd.edu- sheepandgoat