2018/2019 Income and Cost Budgets

Western and Northern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower, groundnuts and grain sorghum for Western and Northern Free State
Area Wesselsbron Bothaville Western and Northern Free State
Crop Maize Maize (high) Soybeans Sunflower Groundnuts Grain sorghum
Production system Dryland

1. Income
Yield: deterministic Ton/ha 5.50 4.50 1.75 1.75 1.50 3.00
SAFEX simulated price / producer price: 2019 R/ton 2 393 2 393 5 250 5 174 7 447 3 172
Total deductions R/ton 340 280 63 296 – 80
– Transport differential R/ton 277 217 – 203 – –
– Grade differential R/ton – – – – – 17
– Marketing and handling R/ton 63 63 63 93 – 63
Price premiums R/ton – – – – – –
Net farm gate price R/ton 2 053 2 113 5 187 4 879 7 447 3 092
Gross income R/ha R11 290 R9 508 R9 078 R8 538 R11 170 R9 276

2. Variable expenditures
Contracting R/ha – – – – – –
Crop insurance R/ha 124 105 220 256 168 371
Fertilizer R/ha 2 931 2 337 842 1 270 701 754
Lime R/ha 124 102 – – 124 113
Seed R/ha 1 336 1 137 794 431 1 430 293
Fuel R/ha 997 940 655 743 1 088 926
Herbicide R/ha 791 737 682 406 738 505
Insecticide R/ha 29 77 909 578 465 249
Fungicides R/ha – – – – – –
Marketing costs R/ha – – – – – –
Repairs and maintenance R/ha 801 753 613 582 1 329 744
Casual labour R/ha 268 219 – – 998 146
Aerial spray R/ha – – – – – –
Other expenditure R/ha – – – – 533 –
Total variable expenditure R/ha R7 402 R6 408 R4 715 R4 265 R7 573 R4 100
Total variable expenditure R/ton R1 346 R1 424 R2 694 R2 437 R5 049 R1 367
3.1 Gross margin R/ha R3 889 R3 100 R4 363 R4 273 R3 597 R5 176
3.2 Gross margin R/ton R707 R689 R2 493 R2 442 R2 398 R1 725
Source: BFAP, GSA and Senwes – 2018.
Gross margin comparison – baseline: Western and Northern Free State
Gross margin comparison - Baseline: Western / Northern Free State

Gross margin per hectare: Northern Free State

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R4 787 72 1 269 2 466 3 663 4 860 6 057 7 253
R4 887 172 1 394 2 616 3 838 5 060 6 282 7 503
R4 987 272 1 519 2 766 4 013 5 260 6 507 7 753
R5 087 372 1 644 2 916 4 188 5 460 6 732 8 003
R5 187 472 1 769 3 066 4 363 5 660 6 957 8 253
R5 287 572 1 894 3 216 4 538 5 860 7 182 8 503
R5 387 672 2 019 3 366 4 713 6 060 7 407 8 753
R5 487 772 2 144 5 516 4 888 6 260 7 632 9 003
R5 587 872 2 269 3 666 5 063 6 460 7 857 9 253
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R4 479 214 1 333 2 453 3 573 4 692 5 812 6 932
R4 579 314 1 458 2 603 3 748 4 892 6 037 7 182
R4 679 414 1 583 2 753 3 923 5 092 6 262 7 432
R4 779 514 1 708 2 903 4 098 5 292 6 487 7 682
R4 879 614 1 833 3 053 4 273 5 492 6 712 7 932
R4 979 714 1 958 3 203 4 448 5 692 6 937 8 182
R5 079 814 2 083 3 353 4 623 5 892 7 162 8 432
R5 179 914 2 208 3 503 4 798 6 092 7 387 8 682
R5 279 1 014 2 333 3 653 4 973 6 292 7 612 8 932
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R7 047 -1 613 373 2 360 4 347 6 333 8 320 10 307
R7 147 -1 538 473 2 485 4 497 6 508 8 520 10 532
R7 247 -1 463 573 2 610 4 647 6 683 8 720 10 757
R7 347 -1 388 673 2 735 4 797 6 858 8 920 10 982
R7 447 -1 313 773 2 860 4 947 7 033 9 120 11 207
R7 547 -1 238 873 2 985 5 097 7 208 9 320 11 432
R7 647 -1 163 973 3 110 5 247 7 383 9 520 11 657
R7 747 -1 088 1 073 3 235 5 397 7 558 9 720 11 882
R7 847 -1 013 1 173 3 360 5 547 7 733 9 920 12 107
Soybeans margin above/below maize
Yield Price (R/ton)
R4 887 R4 987 R5 087 R5 187 R5 287 R5 387 R5 487
0.75 -4 938 -4 863 -4 788 -4 713 -4 638 -4 563 -4 488
1.00 -3 716 -3 616 -3 516 -3 416 -3 316 -3 216 -3 116
1.25 -2 494 -2 369 -2 244 -2 119 -1 994 -1 869 -1 744
1.50 -1 273 -1 123 -973 -823 -673 -523 -373
1.75 -51 124 299 474 649 824 999
2.00 1 171 1 371 1 571 1 771 1 971 2 171 2 371
2.25 2 393 2 618 2 843 3 068 3 293 3 518 3 743
2.50 3 615 3 865 4 115 4 365 4 615 4 865 5 115
2.75 4 837 5 112 5 387 5 662 5 937 6 212 6 487

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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