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

2017/2018 Income and Cost Budgets

Northern Cape – irrigation

Income and cost budgets for maize, soybeans, groundnuts and sunflower (oil) for the Northern Cape
Area Northern Cape
Crop Maize Soybeans Groundnuts Sunflower (oil)
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 13.50 4.00 3.00 3.00
SAFEX simulated price: 2018 / producer price R/ton 2 208 5 221 12 380 5 243
Total deductions R/ton 331 59
– Transport differential R/ton 268
– Grade differential R/ton
– Marketing and handling R/ton 63 59
Price premiums R/ton
Net farm gate price R/ton 1 877 5 162 12 380 15 728
Gross income R/ha R25 340 R20 648 R39 840 R15 728

2. Variable expenditures

Contracting R/ha 3 900 800
Crop insurance R/ha 405 1 404 1 713 587
Fertilizer R/ha 9 387 5 678 7 077 5 301
Lime R/ha 470
Seed R/ha 4 365 1 834 2 182 1 063
Fuel R/ha 946 370 756 760
Herbicide R/ha 216 440 285 149
Insecticide R/ha 2 602 1 493 3 661 103
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 585 354 631 613
Casual labour R/ha 139
Aerial spray R/ha 350
Irrigation electricity R/ha 2 884 2 884 2 592 2 048
Water R/ha 863 863 775 613
Other expenditure: scheduling/irrigation equipment R&M R/ha 472 472 2 072 472
Total variable expenditure R/ha R23 075 R15 792 R26 252 R12 508
Total variable expenditure R/ton R1 709 R3 948 R8 751 R4 169
3.1 Gross margin R/ha R2 265 R4 855 R13 588 R3 219
3.2 Gross margin R/ton R168 R1 214 R4 529 R1 073
Source: BFAP, GSA and GWK – 2017.
Gross margin comparison – baseline: Northern Cape
Gross margin comparison baseline: Northern Cape Irrigation

Gross margin per hectare: Northern Cape

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 250 -1 980 -917 145 1 208 2 270 3 333 4 395
R4 500 -1 167 -42 1 083 2 208 3 333 4 458 5 583
R4 750 -355 833 2 020 3 208 4 395 5 583 6 770
R5 000 458 1 708 2 958 4 208 5 458 6 708 7 958
R5 162 984 2 274 3 565 4 855 6 146 7 436 8 727
R5 500 2 083 3 458 4 833 6 208 7 583 8 958 10 333
R5 750 2 895 4 333 5 770 7 208 8 645 10 083 11 520
R6 000 3 708 5 208 6 708 8 208 9 708 11 208 12 708
R6 250 4 520 6 083 7 645 9 208 10 770 12 333 13 895
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R10 500 602 2 248 5 098 7 948 10 798 13 648 16 498
R11 000 523 3 498 6 473 9 448 12 423 15 398 18 373
R11 500 1 648 4 748 7 848 10 948 14 048 17 148 20 248
R12 000 2 773 5 998 9 223 12 448 15 673 18 898 22 123
R12 380 3 628 6 948 10 268 13 588 16 908 20 228 23 548
R13 000 5 023 8 498 11 973 15 448 18 923 22 398 25 873
R13 500 6 148 9 748 13 348 16 948 20 548 24 148 27 748
R14 000 7 273 10 998 14 723 18 448 22 173 25 898 29 623
R14 500 8 398 12 248 16 098 19 948 23 798 27 648 31 498
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.00 2.50 2.75 3.00 3.25 3.50 3.75
R4 250 -4 008 -1 883 -821 242 1 304 2 367 3 429
R4 500 -3 508 -1 258 -133 992 2 117 3 242 4 367
R4 750 -3 008 -633 554 1 742 2 929 4 117 5 304
R5 000 -2 508 -8 1 242 2 492 3 742 4 992 6 242
R5 243 -2 023 598 1 909 3 219 4 530 5 841 7 151
R5 500 -1 508 1 242 2 617 3 992 5 367 6 742 8 117
R5 750 -1 008 1 867 3 304 4 742 6 179 7 617 9 054
R6 000 -508 2 492 3 992 5 492 6 992 8 492 9 992
R6 250 -8 3 117 4 679 6 242 7 803 9 367 10 929
Soybeans margin above/below maize
Yield Price (R/ton)
R4 250 R4 500 R4 750 R5 162 R5 500 R5 750 R6 000
3.00 -5 308 -4 558 -3 808 -2 572 -1 558 -808 -58
3.25 -4 245 -3 433 -2 620 -1 281 -183 630 1 442
3.50 -3 183 -2 308 -1 433 9 1 192 2 067 2 942
3.75 -2 120 -1 183 -245 1 300 2 567 3 505 4 442
4.00 -1 058 -58 942 2 590 3 942 3 942 5 942
4.25 5 1 067 2 130 3 881 5 317 6 380 7 442
4.50 1 067 2 192 3 317 5 171 6 692 7 817 8 942
4.75 2 130 3 317 4 505 6 462 8 067 9 255 10 442
5.00 3 192 4 442 5 692 7 752 9 442 10 692 11 942

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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