Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 North West Irrigation

2018/2019 Income and Cost Budgets

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 3.80 3.20 7.00
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250 5 174 3 172
Total deductions R/ton 207 59 190 63
– Transport differential R/ton 144 97
– Grade differential R/ton
– Marketing and handling R/ton 63 59 93 63
Price premiums R/ton
Net farm gate price R/ton 2 287 5 191 4 984 3 109
Gross income R/ha R27 449 R19 727 R15 950 R21 760

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 647 2 407 319 913
Fertilizer R/ha 6 419 2 315 2 338 3 744
Lime R/ha 416 416
Seed R/ha 3 898 1 685 748 669
Fuel R/ha 938 754 878 917
Herbicide R/ha 817 1 182 486 1 971
Insecticide R/ha 456 134 28 456
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 436 378 441 609
Casual labour R/ha 105 133
Aerial spray R/ha 213
Irrigation electricity R/ha 970 2 811 1 874 2 811
Water R/ha 970 662 441 662
Other expenditure: scheduling/irrigation equipment R&M R/ha 372 394 372 394
Total variable expenditure R/ha R20 492 R12 722 R8 031 R13 908
Total variable expenditure R/ton R1 708 R3 348 R2 510 R1 987
3.1 Gross margin R/ha R6 957 R7 005 R7 918 R7 852
3.2 Gross margin R/ton R580 R1 843 R2 475 R1 122
Source: BFAP, GSA, NWK and individual farmers – 2018.
Gross margin comparison – baseline: North West (Brits)
Gross margin comparison – Baseline: North West: Brits Region

Gross margin per hectare: North West (Brits)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R4 791 1 652 2 850 4 048 5 485 6 444 7 641 8 839
R4 891 1 952 3 175 4 398 5 865 6 844 8 066 9 289
R4 991 2 252 3 500 4 748 6 245 7 244 8 491 9 739
R5 091 2 552 3 825 5 098 6 625 7 644 8 916 10 189
R5 191 2 852 4 150 5 448 7 005 8 044 9 341 10 639
R5 291 3 152 4 475 5 798 7 385 8 444 9 766 11 089
R5 391 3 452 4 800 6 148 7 765 8 844 10 191 11 539
R5 491 3 752 5 125 6 498 8 145 9 244 10 616 11 989
R5 591 4 052 5 450 6 848 8 525 9 644 11 041 12 439
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.20 3.50 3.75 4.00
R4 584 3 429 4 575 5 722 6 638 8 014 9 160 10 306
R4 684 3 679 4 850 6 022 6 958 8 364 9 535 10 706
R4 784 3 929 5 125 6 322 7 278 8 714 9 910 11 106
R4 884 4 179 5 400 6 622 7 598 9 064 10 285 11 506
R4 984 4 429 5 675 6 922 7 918 9 414 10 660 11 906
R5 084 4 679 5 950 7 222 8 238 9 764 11 035 12 306
R5 184 4 929 6 225 7 522 8 558 10 114 11 410 12 706
R5 284 5 179 6 500 7 822 8 878 10 464 11 785 13 106
R5 384 5 429 6 775 8 122 9 198 10 814 12 160 13 506
Soybeans margin above/below maize
Yield Price (R/ton)
R4 891 R4 991 R5 091 R5 191 R5 291 R5 391 R5 491
2.75 -6 227 -5 952 -5 677 -5 402 -5 127 -4 852 -4 577
3.00 -5 004 -4 704 -4 404 -4 104 -3 804 -3 504 -3 204
3.25 -3 782 -3 457 -3 132 -2 807 -2 482 -2 157 -1 832
3.50 -2 559 -2 209 -1 859 -1 509 -1 159 -809 -459
3.80 -1 091 -711 -331 49 429 809 1 189
4.00 -113 287 687 1 087 1 487 1 887 2 287
4.25 1 110 1 535 1 960 2 385 2 810 3 235 3 660
4.50 2 333 2 783 3 233 3 683 4 133 4 583 5 033
4.75 3 556 4 031 4 506 4 981 5 456 5 931 6 406

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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