DISCLAIMER

Use of any information in this brochure or web site is entirely at a user's own risk. Users shall assume full responsibility for loss or damage which may result from the use thereof. Neither the Protein Research Foundation (PRF), it's Trustees, agents, consultants, representatives or employees shall be liable for any such loss or damage resulting from the use of any information contained in this brochure or web site.

OBJECTIVE

Income and cost budgets are compiled annually by the PRF for canola as well as for selected competitive crops within the Winter Rainfall Areas respectively.

The information is meant to be used as a guideline by existing, and/or potential producers of these crops and can be compared with a producer's own figures. Adjustments can be made in respect of prices and yields as well as the various cost items to simulate the situation on an existing farm.

In addition to the cost of producing a crop, profitability, in the form of gross margin (gross income minus variable costs), is shown. The relative profitability of certain competitive crops is also portrayed.

These budgets can also be utilized to execute a whole farm plan, including planning of cash flow and the calculation of credit requirements for the entire farming operation, if budgets for all the other potential enterprises are known.

Cognizance should be taken of the fact that the economic and agronomic benefits of canola in a rotation system are not reflected in the gross margins of these crops.

These budgets can also be used as a basis for compiling budgets for similar crops in other areas for which no budgets exist.

The PRF also presents a 'do-it-yourself income and cost estimate' facility for producers to compile budgets for specific circumstances. See PRF Website at Income & Cost Budget Online Form and Software.

STUDY AREA

Regions within the Winter Rainfall Areas are included in the study area.

The following regions are included in the Winter Rainfall Study Area:

Swartland

Malmesbury
Porterville
Moorreesburg
Eendekuil

Overberg

Caledon
Bredasdorp

Southern Cape

Swellendam / Heidelberg

METHODOLOGY

Information for compiling income and cost budgets for selected crops is obtainable from agri-businesses. The PRF may, however, adjust the budget format in order to present the results on a comparable basis. Should information not be available from agribusinesses, focus group discussions are held with producers to obtain the required information. As structural changes may occur within the agricultural sector, focus group discussions are repeated every three years. During the interim period, budgets are adjusted using the latest prices.

The income- and cost budgets are based on typical or recommended practices followed in the various regions. Some adjustments may be made, based on study group information, to reflect a typical situation. The information source is indicated per footnote in the budget. When recommended practices were used as point of departure, the cost of certain inputs and the levels of application were obtained from technical experts and information gathered from study groups.

Sources of information according to region are presented in Table 1.
 

TABLE 1 SOURCES OF INFORMATION ACCORDING TO REGION, WINTER RAINFALL STUDY AREA

The PRF hereby acknowledges with thanks the cooperation of agribusinesses listed in Table 1.

Cultivation costs include fuel and maintenance for tractors and implements. Norms according to the "Mechanisation Guide", an annual publication compiled and updated by JP le Roux, a private consultant, are applied for group discussion budgets. Agribusinesses maintain and up-date their own norms regarding mechanization costs.

An estimate of expected canola prices may be obtained from SOILL. Wheat price is derived from SAFEX-future prices. All prices used are applicable at the time of compiling or updating the budgets. Future SAFEX prices during expected harvesting periods are applied. Estimated contracted prices for barley are obtained from buyers and suppliers.

PRF presents a summarized budget for the alternative enterprises and they can be approached for more detailed information regarding the type, quantity and prices of inputs used in the budgets. PRF, however, undertook not to release any detail information as provided by agribusinesses. PRF will approach these agribusinesses if requests are received in this connection.