Income & Cost Budgets / 2017/2018 / Soybean Maize Sunflower / Icb 2017 North West Koster Dryland

2017/2018 Income and Cost Budgets

North West (Koster) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Koster region
Area North West: Koster
Crop Maize Soybeans Sunflower
Production system Dryland

1. Income

Yield: deterministic Ton/ha 4.75 2.00 2.00
SAFEX simulated price: 2018 / producer price R/ton 2 045 5 221 5 243
Total deductions R/ton 199 59 244
– Transport differential R/ton 136 151
– Grade differential R/ton
– Marketing and handling R/ton 63 59 93
Price premiums R/ton
Net farm gate price R/ton 1 846 5 162 4 999
Gross income R/ha R8 768 R10 324 R9 997

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 219 1 136 450
Fertilizer R/ha 2 165 1 265 1 336
Lime R/ha 425
Seed R/ha 970 571 478
Fuel R/ha 813 757 740
Herbicide R/ha 863 584 251
Insecticide R/ha 516 221 21
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 679 597 624
Casual labour R/ha 208 133
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R6 858 R5 131 R4 033
Total variable expenditure R/ton R1 444 R2 565 R2 017
3.1 Gross margin R/ha R1 910 R5 193 R5 964
3.2 Gross margin R/ton R402 R2 597 R2 982
Source: BFAP, GSA, NWK and individual farmers – 2017.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison baseline: North West (Koster and Lichtenburg)

Gross margin per hectare: North West (Koster)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 250 182 1 244 2 307 3 369 4 432 5 494 6 557
R4 500 494 1 619 2 744 3 869 4 994 6 119 7 244
R4 750 807 1 994 3 182 4 369 5 557 6 744 7 932
R5 000 1 119 2 369 3 619 4 869 6 119 7 369 8 619
R5 162 1 322 2 612 3 903 5 193 6 484 7 774 9 065
R5 500 1 744 3 119 4 494 5 869 7 244 8 619 9 994
R5 750 2 057 3 494 4 932 6 369 7 807 9 244 10 682
R6 000 2 369 3 869 5 369 6 869 8 369 9 869 11 369
R6 250 2 682 4 244 5 807 7 369 8 932 10 494 12 057
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 000 967 1 967 2 967 3 967 4 967 5 967 6 967
R4 250 1 279 2 342 3 404 4 467 5 529 6 592 7 654
R4 500 1 592 2 717 3 842 4 967 6 092 7 217 8 342
R4 750 1 904 3 092 4 279 5 467 6 654 7 842 9 029
R4 999 2 215 3 464 4 714 5 964 7 213 8 463 9 713
R5 250 2 529 3 842 5 154 6 467 7 779 9 092 10 404
R5 500 2 842 4 217 5 592 6 967 8 342 9 717 11 092
R5 750 3 154 4 592 6 029 7 467 8 904 10 342 11 779
R6 000 3 467 4 967 6 467 7 967 9 467 10 967 12 467
Soybeans margin above/below maize
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 162 R5 500 R5 750 R6 000
0.50 -4 791 -4 666 -4 541 -4 460 -4 291 -4 166 -4 041
0.75 -3 666 -3 479 -3 291 -3 170 -2 916 -2 729 -2 541
1.00 -2 541 -2 291 -2 041 -1 879 -1 541 -1 291 -1 041
1.25 -1 416 -1 104 -791 -589 -166 146 459
2.00 1 959 2 459 2 959 3 283 3 959 4 459 4 959
1.75 834 1 271 1 709 1 992 2 584 3 021 3 459
2.00 1 959 2 459 2 959 3 283 3 959 4 459 4 959
2.25 3 084 3 646 4 209 4 573 5 334 5 896 6 459
2.50 4 209 4 834 5 459 5 864 6 709 7 334 7 959

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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