Introduction

Market swings, feed costs, and uncertain returns can make it hard to decide whether to sell lambs at weaning, retain and finish them, or expand the flock. Weather the Ups and Downs with the UW‑Madison Extension Sheep Operation Enterprise Budget walks producers through a practical, decision‑ready Excel tool that estimates cost of production and projects breakeven under different scenarios using each farm’s own numbers. The session reinforces that budgets are forward‑looking, but can also be used to “close out” a production cycle and benchmark actual performance—helping identify strengths, gaps, and risk‑management opportunities. 

Ihde and Halfman explain how to separate the ewe flock from lamb finishing as distinct enterprises to avoid masking costs or double‑counting returns. They show how to enter historical records and current prices, model alternative marketing choices (e.g., sell feeders vs. feed out on pasture or in a dry lot), and examine sensitivity to changes in feed, labor, and market values. Participants learn to interpret outputs such as per‑ewe and per‑lamb cost, margin, and breakeven, and how those metrics guide day‑to‑day decisions as well as long‑range planning. 

Throughout the webinar, the presenters highlight how consistent recordkeeping and enterprise separation sharpen decisions about ration changes, culling or expansion, and timing of sales. They also discuss how the tool supports conversations with lenders and partners by quantifying “what‑ifs” and documenting assumptions—key steps when input prices are volatile and returns vary across years.  

Objectives

• Use the UW–Madison Sheep Operation Enterprise Budget to estimate cost of production and breakeven for their operation. 
• Separate ewe and lamb‑finishing enterprises to clarify costs, revenues, and profitability drivers.  
• Run “what‑if” scenarios (feed, labor, prices) to inform marketing and risk‑management decisions. 
• Apply budget outputs to evaluate whether to sell at weaning, retain and finish, or consider flock expansion