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

2017/2018 Income and Cost Budgets

Limpopo (Loskop region) – irrigation

Income and cost budgets for maize and soybeans for Limpopo (Loskop)
Area Limpopo: Loskop
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 308 59
– Transport differential R/ton 245
– Grade differential R/ton
– Marketing and handling R/ton 63 59
Price premiums R/ton
Net farm gate price R/ton 1 900 5 162
Gross income R/ha R22 800 R20 648

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 368 950
Fertilizer R/ha 6 098 2 228
Lime R/ha 425
Seed R/ha 4 110 1 834
Fuel R/ha 990 757
Herbicide R/ha 353 847
Insecticide R/ha 78 225
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 689 631
Casual labour R/ha
Aerial spray R/ha
Irrigation electricity R/ha 3 772 2 572
Water R/ha 334 228
Other expenditure: scheduling/irrigation equipment R&M R/ha 370 370
Total variable expenditure R/ha R18 587 R10 652
Total variable expenditure R/ton R1 549 R2 663
3.1 Gross margin R/ha R4 214 R9 996
3.2 Gross margin R/ton R351 R2 499
Source: BFAP, GSA and individual farmers – 2017.
Gross margin comparison – baseline: Limpopo (Loskop region)
Gross margin comparison baseline: Limpopo Irrigation - Loskop region

Gross margin per hectare: Limpopo (Loskop area)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 250 3 160 4 223 5 285 6 348 7 410 8 473 9 535
R4 500 3 973 5 098 6 223 7 348 8 473 9 598 10 723
R4 750 4 785 5 973 7 160 8 348 9 535 10 723 11 910
R5 000 5 598 6 848 8 098 9 348 10 598 11 848 13 098
R5 162 6 124 7 415 8 705 9 996 11 286 12 577 13 867
R5 500 7 223 8 598 9 973 11 348 12 723 14 098 15 473
R5 750 8 035 9 473 10 910 12 348 13 785 15 223 16 660
R6 000 8 848 10 348 11 848 13 348 14 848 16 348 17 848
R6 250 9 660 11 223 12 785 14 348 15 910 17 473 19 035
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 -1 366 -616 134 620 1 634 2 384 3 134
3.25 -241 571 1 384 1 910 3 009 3 821 4 634
3.50 884 1 759 2 634 3 201 4 384 5 259 6 134
3.75 2 009 2 946 3 884 4 491 5 759 6 696 7 634
4.00 3 134 4 134 5 134 5 782 7 134 8 134 9 134
4.25 4 259 5 321 6 384 7 072 8 509 9 571 10 634
4.50 5 384 6 509 7 634 8 363 9 884 11 009 12 134
4.75 6 509 7 696 8 884 9 653 11 259 12 446 13 634
5.00 7 634 8 884 10 134 10 944 12 634 13 884 15 134

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.
Subscribe: receive ICBs via e-mail