Agricultural Economics, Department of
Center for Agricultural Profitability
Is Lamb Feeding Profitable?
Date of this Version
1-21-2026
Document Type
Article
Citation
Parsons, J., Cozzens, T., “Is Lamb Feeding Profitabile?.” CAP Series 26-0101, Center for Agricultural Profitability, University of Nebraska-Lincoln, Jan. 21, 2026. DOI: 10.32873/unl.dc.cap085.
Abstract
Nebraska regularly ranks with Texas as one of the top two states in the U.S. for cattle on feed. Yet, few realize that more than a century ago, Nebraska was also a leading lamb-feeding state. In the late 1800s, over half a million sheep were on feed in Nebraska. In the 1880s, significant feeding occurred near Fremont and Columbus, but by 1890, it was concentrated in sheep feedlots operating along the Platte River valley between Grand Island and Kearney (Wentworth, 1948). Most sheep were trailed in from New Mexico, Colorado, Wyoming, Idaho, and Oregon. Nebraska feedlots offered access to abundant feed and convenient rail shipping to both coasts for consumption.
Recently, there have been some inquiries about the economics of lamb feeding. Does it provide a viable return? The key metric is the “net feeding margin,” calculated as the value of gain (VOG) minus feed costs. In livestock production economics, this figure represents the difference between the value added through weight gain and the cost of feed during the feeding period. It is commonly calculated on a per-head basis, allowing for practical decision-making based on enterprise budgeting and profitability. However, calculating it on a per-pound-of-gain basis offers a clearer economic signal for comparing feeding strategies and cost of gain efficiencies.
The feeding margin is critical because it indicates whether feeding the animal was profitable after accounting for feed expenses. Most producers also include other costs (like yardage, health, and interest) to calculate a more comprehensive feeding return based on the total cost of gain.