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If you have high friendship and Shephard, sheep will produce every day, but require shears and attention.
Sheep are better, but require more work. Rabbits are for lazy people. Sheep are better money. I think sheep are bugged now, though... Work for some people, not for others.
I don't think anybody is doing sheeps for money... mostly getting the items for requirements and building some things. Some wool once in a while is enough, i'd rather go with low maintenance of rabbits every time. And you get the lucky foot as a bonus.
I did a forest farm with 2 coops and a barn, I didn't use pigs or ducks despite them being the best
I'm probably gonna do a farm based on sheep and cooking soon, where you only sell food (bread, eggplant parm, etc.) or maybe a bee/tree based run
I would say rabbits are for people who want to do other things in the game besides pet and sheer their sheep.
Rabbits also are quiet, which is very nice for those of us who get tired of hearing the animal noises.
I eventually sold the 3 rabbits I had and replaced them with dinosaurs and void chickens. The rabbits weren't dropping much wool and the rabbit's foot was too rare for me to keep them.