Now is my way, the only way ... no ... This is a guide to how I do work wool into yarn. I hope others will pitch in with how they do it also. (hint, hint ) First you need some sheep, yours or the sheep farm down the road. (or across the state. :gaah There are more breeds of sheep than breeds of any other livestock species. Worldwide, there are more than one thousand distinct sheep breeds. There are more than 40 breeds in the United States. Sheep come in all different sizes, shapes, and colors.