Western Cape – dryland

Income and cost budgets for wheat, canola and lupins for Darling Flats – Hopefield (Sandveld region)

Area		Darling Flats – Hopefield (Sandveld region)
Crop		Wheat	Canola	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.35	1.20	1.35
SAFEX simulated / derived price: 2018	R/ton	3 813	4 613	3 250
Total deductions	R/ton	726	4	–
– Transport differential	R/ton	560	–	–
– Grade differential	R/ton	60	–	–
– Marketing, handling and statutory levies	R/ton	107	4	–
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	461	–
Net farm gate price	R/ton	3 087	5 070	3 250
Gross income	R/ha	R7 254	R6 084	R4 388
2. Variable expenditures
Contracting	R/ha	–	–	–
Crop insurance	R/ha	20	20	14
Fertilizer	R/ha	1 961	1 854	408
Lime	R/ha	139	139	139
Seed	R/ha	535	1 042	500
Fuel	R/ha	438	311	315
Herbicide	R/ha	863	416	485
Insecticide	R/ha	89	119	46
Fungicides	R/ha	251	91	80
Marketing costs	R/ha	37	13	–
Repairs and maintenance	R/ha	537	440	461
Casual labour	R/ha	13	13	13
Aerial spray	R/ha	–	–	–
Other expenditure	R/ha	–	–	–
Total variable expenditure	R/ha	R4 883	R4 458	R2 461
Total variable expenditure	R/ton	R2 078	R3 715	R1 823
3.1 Gross margin	R/ha	R2 372	R1 626	R1 926
3.2 Gross margin	R/ton	R1 009	R1 355	R1 427

Source: Kaap Agri, Overberg Agri, GSA and BFAP, 2018.

Gross margin per hectare: Western Cape – Darling Flats – Hopefield

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 costs for wheat, barley and oats seeds reflect a combination of own and purchased seed.
It is important to note that overhead costs are not included and should be accounted for.