Income & Cost Budgets / 2017/2018 / Soybean Maize Sunflower / Icb 2017 Kwazulu Natal Irrigation

2017/2018 Income and Cost Budgets

KwaZulu-Natal (Bergville) – irrigation

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bergrivier)
Area KwaZulu-Natal: Bergrivier
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price: 2018 / producer price R/ton 2 208 5 221
Total deductions R/ton 357 59
– Transport differential R/ton 297
– Grade differential R/ton
– Marketing and handling R/ton 60 59
Price premiums R/ton
Net farm gate price R/ton 1 851 5 162
Gross income R/ha R22 212 R20 648

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 844 2 519
Fertilizer R/ha 6 178 2 968
Lime R/ha 425
Seed R/ha 3 880 1 834
Fuel R/ha 990 370
Herbicide R/ha 1 236 857
Insecticide R/ha 232 225
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 631 354
Casual labour R/ha
Aerial spray R/ha
Irrigation electricity R/ha 3 144 2 572
Water R/ha 278 228
Other expenditure: scheduling/irrigation equipment R&M R/ha 360
Total variable expenditure R/ha R18 198 R11 927
Total variable expenditure R/ton R1 516 R2 982
3.1 Gross margin R/ha R4 015 R8 721
3.2 Gross margin R/ton R335 R2 180
Source: BFAP, GSA and individual farmers – 2017.
Gross margin comparison – baseline: KwaZulu-Natal (Bergrivier)
Gross margin comparison baseline: KwaZulu-Natal Irrigation - Bergville

Gross margin per hectare: KwaZulu-Natal (Bergville)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 250 1 885 2 948 4 010 5 073 6 135 7 198 8 260
R4 500 2 698 3 823 4 948 6 073 7 198 8 323 9 448
R4 750 3 510 4 698 5 885 7 073 8 260 9 448 10 635
R5 000 4 323 5 573 6 823 8 073 9 323 10 573 11 823
R5 162 4 849 6 140 7 430 8 721 10 011 11 302 12 592
R5 500 5 948 7 323 8 698 10 073 11 448 12 823 14 198
R5 750 6 760 8 198 9 635 11 073 12 510 13 948 15 385
R6 000 7 573 9 073 10 573 12 073 13 573 15 073 16 573
R6 250 8 385 9 948 11 510 13 073 14 635 16 198 17 760
Soybeans margin above/below maize
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 162 R5 500 R5 750 R6 000
3.00 -2 442 -1 692 -942 -456 558 1 308 2 058
3.25 -1 317 -505 308 834 1 933 2 745 3 558
3.50 -192 683 1 558 2 125 3 308 4 183 5 058
3.75 933 1 870 2 808 3 415 4 683 5 620 6 558
4.00 2 058 3 058 4 058 4 706 6 058 7 058 8 058
4.25 3 183 4 245 5 308 5 996 7 433 8 495 9 558
4.50 4 308 5 433 6 558 7 287 8 808 9 933 11 058
4.75 5 433 6 620 7 808 8 577 10 183 11 370 12 558
5.00 6 558 7 808 9 058 9 868 11 558 12 808 14 058

Notes

  • The cost items reflect the input allocation based on the target yield for the respective crops.
  • Although some expenditure items are zero, it is reflected in the budgets to allow for individual inclusion.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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