Sheep are like locusts and they breed like rabbits. Goats are very intelligent, personable, and the Nubian dairy goats we had would milk about two gallons a day each. If I were to small scale farm I'd go with goats. Goats prefer to graze on brush, ie, from your knees up to your chest. Tall stands of alfalfa, oats, peas, and such. Sheep are gentle, stupid, and born looking for a place to die. They will overgraze quality pasture and ruin it if you are not very careful and keep rotation sections to accomodate one day in seven. They will also bloat at the drop of a hat in the evening hours after they lay down for the night. You'll go out to check on them at midnight and find them in congestive heart failure with their feet pointing straight to heaven. Of all the losses I ever experienced, tipped over sheep was the largest mortality issue.
Good luck! It's a great environment to raise your kids.