2018 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat, canola and oats for Moorreesburg, Malmesbury and Porterville
Area Moorreesburg, Malmesbury and Porterville
Crop Wheat Canola Oats
Production system Dryland

1. Income
Yield: deterministic Ton/ha 3.00 1.50 2.70
SAFEX simulated / derived price: 2018 R/ton 3 813 4 613 2 900
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 2 900
Gross income R/ha R9 261 R7 605 R7 830

2. Variable expenditures
Contracting R/ha – – –
Crop insurance R/ha 26 25 26
Fertilizer R/ha 2 333 2 165 1 605
Lime R/ha 139 139 139
Seed R/ha 591 1 112 294
Fuel R/ha 426 317 357
Herbicide R/ha 987 580 330
Insecticide R/ha 89 119 65
Fungicides R/ha 511 182 269
Marketing costs R/ha 37 13 37
Repairs and maintenance R/ha 660 639 607
Casual labour R/ha 13 13 13
Aerial spray R/ha – – –
Other expenditure R/ha – – –
Total variable expenditure R/ha R5 811 R5 304 R3 742
Total variable expenditure R/ton R1 937 R3 536 R1 386
3.1 Gross margin R/ha R3 449 R2 301 R4 088
3.2 Gross margin R/ton R1 150 R1 534 R1 514
Source: Kaap Agri, Overberg Agri, GSA and BFAP, 2018.
Gross margin comparison – Baseline: Western Cape (Swartland)
Gross margin comparison – Baseline: Western Cape (Southern Swartland)

Gross margin per hectare: Western Cape – Moorreesburg, Malmesbury and Porterville

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 087 -1 116 -594 -72 449 971 1 493 2 015
R2 337 -553 31 615 1 199 1 784 2 368 2 952
R2 587 9 656 1 303 1 949 2 596 3 243 3 890
R2 837 572 1 281 1 990 2 699 3 409 4 118 4 827
R3 087 1 134 1 906 2 678 3 449 4 221 4 993 5 765
R3 337 1 697 2 531 3 365 4 199 5 034 5 868 6 702
R3 587 2 259 3 156 4 053 4 949 5 846 6 743 7 640
R3 837 2 822 3 781 4 740 5 699 6 659 7 618 8 577
R4 087 3 384 4 406 5 428 6 449 7 471 8 493 9 515
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 070 -2 252 -1 234 -217 801 1 818 2 836 3 853
R4 320 -2 064 -984 96 1 176 2 256 3 336 4 416
R4 570 -1 877 -734 408 1 551 2 693 3 836 4 978
R4 820 -1 689 -484 721 1 926 3 131 4 336 5 541
R5 070 -1 502 -234 1 033 2 301 3 568 4 836 6 103
R5 320 -1 314 16 1 346 2 676 4 006 5 336 6 666
R5 570 -1 127 266 1 658 3 051 4 443 5 836 7 228
R5 820 -939 516 1 971 3 426 4 881 6 336 7 791
R6 070 -752 766 2 283 3 801 5 318 6 836 8 353
Canola margin above/below wheat
Yield Price (R/ton)
R4 320 R4 570 R4 820 R5 070 R5 320 R5 570 R5 820
0.50 -6 594 -6 469 -6 344 -6 219 -6 094 -5 969 -5 844
0.75 -5 514 -5 326 -5 139 -4 951 -4 764 -4 576 -4 389
1.00 -4 434 -4 184 -3 934 -3 684 -3 434 -3 184 -2 934
1.25 -3 354 -3 041 -2 729 -2 416 -2 104 -1 791 -1 479
1.50 -2 274 -1 899 -1 524 -1 149 -774 -399 -24
1.75 -1 194 -756 -319 119 556 994 1 431
2.00 -114 396 886 1 386 1 886 2 386 2 886
2.25 966 1 529 2 091 2 654 3 216 3 779 4 341
2.50 2 046 2 671 3 296 3 921 4 546 5 171 5 796

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 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.
Subscribe: receive ICBs via e-mail