Income & Cost Budgets / 2017/2018 / Soybean Maize Sunflower / Icb 2017 Mpumalanga Dryland

2017/2018 Income and Cost Budgets

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 6.50 2.50 4.00 6.50 2.00
SAFEX simulated price: 2018 / producer price R/ton 2 208 5 221 2 911 2 208 5 221
Total deductions R/ton 269 59 63 321 60
– Transport differential R/ton 209 261
– Grade differential R/ton
– Marketing and handling R/ton 60 59 63 60 60
Price premiums R/ton
Net farm gate price R/ton 1 939 5 162 2 848 1 887 5 161
Gross income R/ha R12 604 R12 905 R11 391 R12 266 R10 322

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 479 1 574 342 466 1 259
Fertilizer R/ha 2 980 1 879 1 986 2 980 1 693
Lime R/ha 425 425 425
Seed R/ha 2 183 1 142 540 2 183 1 047
Fuel R/ha 747 592 793 747 574
Herbicide R/ha 1 236 857 537 1 236 857
Insecticide R/ha 232 225 372 232 225
Fungicides R/ha 560
Marketing costs R/ha
Repairs and maintenance R/ha 631 504 653 631 500
Casual labour R/ha 231 231
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R9 143 R6 774 R6 208 R9 130 R6 155
Total variable expenditure R/ton R1 407 R2 710 R1 552 R1 405 R3 078
3.1 Gross margin R/ha R3 461 R6 131 R5 183 R3 136 R4 167
3.2 Gross margin R/ton R532 R2 452 R1 296 R482 R2 083
Source: BFAP, GSA and individual farmers – 2017.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 250 664 1 726 2 789 3 851 4 914 5 976 7 039
R4 500 1 101 2 226 3 351 4 476 5 601 6 726 7 851
R4 750 1 539 2 726 3 914 5 101 6 289 7 476 8 664
R5 000 1 976 3 226 4 476 5 726 6 976 8 226 9 476
R5 162 2 260 3 550 4 841 6 131 7 422 8 712 10 003
R5 500 2 851 4 226 5 601 6 976 8 351 9 726 11 101
R6 000 3 726 5 226 6 726 8 226 9 726 11 226 12 726
R6 500 4 601 6 226 7 851 9 476 11 101 12 726 14 351
R7 000 5 476 7 226 8 976 10 726 12 476 14 226 15 976
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 250 843 220 1 282 2 345 3 407 4 470 5 532
R4 500 530 595 1 720 2 845 3 970 5 095 6 220
R4 750 218 970 2 157 3 345 4 532 5 720 6 907
R5 000 95 1 345 2 595 3 845 5 095 6 345 7 595
R5 161 296 1 586 2 877 4 167 5 457 6 747 8 038
R5 500 720 2 095 3 470 4 845 6 220 7 595 8 970
R6 000 1 345 2 845 4 345 5 845 7 345 8 845 10 345
R6 500 1 970 3 595 5 220 6 845 8 470 10 095 11 720
R7 000 2 595 4 345 6 096 7 845 9 595 11 345 13 095
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 162 R5 500 R5 750 R6 000
1.50 -3 485 -3 110 -2 735 -2 492 -1 985 -1 610 -1 235
1.75 -2 360 -1 922 -1 485 -1 201 -610 -172 265
2.00 -1 235 -735 -235 89 765 1 265 1 765
2.25 -110 453 1 015 1 380 2 140 2 703 3 265
2.50 1 015 1 640 2 265 2 670 3 515 4 140 4 765
2.75 2 140 2 828 3 515 3 961 4 890 5 578 6 265
3.00 3 265 4 015 4 765 5 251 6 265 7 015 7 765
3.25 4 390 5 203 6 015 6 542 7 640 8 453 9 265
3.50 5 515 6 390 7 265 7 832 9 015 9 890 10 765
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 162 R5 500 R5 750 R6 000
1.00 -4 791 -4 541 -4 291 -4 130 -3 791 -3 541 -3 291
1.25 -3 666 -3 353 -3 041 -2 840 -2 416 -2 103 -1 791
1.50 -2 541 -2 166 -1 791 -1 549 -1 041 -666 -291
1.75 -1 416 -978 -541 -259 334 772 1 209
2.00 -291 209 709 1 031 1 709 2 209 2 709
2.25 834 1 397 1 959 2 321 3 084 3 647 4 209
2.50 1 959 2 584 3 209 3 612 4 459 5 084 5 709
2.75 3 084 3 772 4 459 4 901 5 834 6 522 7 209
3.00 4 209 4 959 5 709 6 192 7 209 7 959 8 709

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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