Abstract The southeastern United States offers a tremendous opportunity for expanding woodland grazing technology for small ruminants in its almost 60 percent woodland. Like in many other states, Alabama alone has 23 million acres of woodland. Conversely, livestock owners face a daunting challenge to forage their animals for about seven lean months each year. Raising animals on concentrates, of course, is economically unfeasible for small-scale producers. Woodland grazing is an untapped practice that boosts economic, social, and environmental benefits to woodland owners. The objectives of this study were to diversify household cash flow for woodland owners and simultaneously promote forage-based livestock production systems. The study was conducted at Tuskegee University from 2017 to 2020 in 6 acres of woodland (southern pines and non-pine species). Meat goats (8 Wethers) and hair sheep (5 Rams) were grazed rotationally for 6 months (May–Oct.) until they consumed 50% of the available foliage. They were not fed any supplement feed while grazing in woodlands. The feeding cost was estimated using four scenarios: sack/pellet, hay, sack/pellet and hay, and woodland grazing holding health, management, minerals and water costs constant. Feeding cost was 58–204% lower, and labor cost was 50–100% less in woodland grazing compared to conventional feeding systems. Extrapolated data reveal that woodland owners may generate about $9,947.00 more cash flow annually from 50 acres with woodland grazing than without grazing. Moreover, the system approach strengthens knowledge, attitude, awareness, skill, and motivation of the family members and community as a percolation effect. Besides, the environmental benefits (controlling unwanted and invading species and aesthetic pleasure) increase the economic value. Results reveal that woodland grazing can open an enormous economic opportunity to all forestland owners by upholding annual cash flow while trees are growing and making the total returns from woodlands much higher than the monocropping-timber.