Income & Cost Budgets / 2019/2020 / Winter Crops / Icb 2019 Southern Cape Bredasdorp Dryland

2019 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Bredasdorp region)
Area Southern Cape: Bredasdorp
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 3.00 1.65 2.60 1.20
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513 5 230 3 144 3 250
Total deductions R/ton 751 633 80 5
– Transport differential R/ton 580 580 75
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107 53 5 5 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 523
Net farm gate price R/ton 3 762 3 837 5 673 3 144 3 250
Gross income R/ha R11 285 R11 510 R9 361 R8 174 R3 900

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 37 38 31 27 13
Fertilizer R/ha 2 183 2 081 2 272 1 506 1 080
Lime R/ha 86 86 86 86 86
Seed R/ha 645 544 946 407 834
Fuel R/ha 809 823 756 801 782
Herbicide R/ha 839 720 719 451 564
Insecticide R/ha 340 418 215 122 301
Fungicides R/ha 777 942 517 526 218
Marketing costs R/ha 37 47 13
Repairs and maintenance R/ha 748 769 695 775 753
Casual labour R/ha 7 7 7 7 7
Aerial spray R/ha
Other expenditure R/ha 111 113 106 95 95
Total variable expenditure R/ha R6 620 R6 586 R6 362 R4 802 R4 731
Total variable expenditure R/ton R2 207 R2 195 R3 856 R1 847 R3 943
3.1 Gross margin R/ha R4 665 R4 923 R2 999 R3 372 -R831
3.2 Gross margin R/ton R1 555 R1 641 R1 818 R1 297 -R693
Break-even yield T/ha 1.76 1.72 1.12 1.53 1.46
Break-even price R/ton R2 207 R2 195 R3 856 R1 847 R3 943
Source: Overberg Agri, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Southern Cape (Bredasdorp region)
Gross margin comparison – Baseline: Southern Cape (Bredasdorp region)

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 762 -406 285 975 1 665 2 356 3 046 3 737
R3 012 157 910 1 662 2 415 3 168 3 921 4 674
R3 262 719 1 535 2 350 3 165 3 981 4 796 5 612
R3 512 1 282 2 160 3 037 3 915 4 793 5 671 6 549
R3 762 1 844 2 785 3 725 4 665 5 606 6 546 7 487
R4 012 2 407 3 410 4 412 5 415 6 418 7 421 8 424
R4 262 2 969 4 035 5 100 6 165 7 231 8 296 9 362
R4 512 3 532 4 660 5 787 6 915 8 043 9 171 10 299
R4 762 4 094 5 285 6 475 7 665 8 856 10 046 11 237
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 837 -204 505 1 214 1 923 2 632 3 341 4 051
R3 087 258 1 130 1 902 2 673 3 445 4 216 4 988
R3 337 921 1 755 2 589 3 423 4 257 5 091 5 926
R3 587 1 483 2 380 3 277 4 173 5 070 5 966 6 863
R3 837 2 046 3 005 3 964 4 923 5 882 6 841 7 801
R4 087 2 608 3 630 4 652 5 673 6 695 7 716 8 738
R4 337 3 171 4 255 5 339 6 423 7 507 8 591 9 676
R4 587 3 733 4 880 6 027 7 173 8 320 9 466 10 613
R4 837 4 296 5 505 6 714 7 923 9 132 10 341 11 551
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.65 1.75 2.00 2.25
R4 673 -1 689 -520 648 1 349 1 816 2 985 4 153
R4 923 -1 439 -208 1 023 1 762 2 254 3 485 4 716
R5 173 -1 189 105 1 398 2 174 2 691 3 985 5 278
R5 423 -939 417 1 773 2 587 3 129 4 485 5 841
R5 673 -689 730 2 148 2 999 3 566 4 985 6 403
R5 923 -439 1 042 2 523 3 412 4 004 5 485 6 966
R6 173 -189 1 355 2 898 3 824 4 441 5 985 7 528
R6 423 61 1 665 3 273 4 237 4 879 6 485 8 091
R6 673 311 1 980 3 648 4 649 5 316 6 985 8 653
Canola margin above/below wheat
Yield Price (R/ton)
R4 923 R5 173 R5 423 R5 673 R5 923 R6 173 R6 423
0.75 -7 335 -7 147 -6 960 -6 772 -6 585 -6 397 -6 210
1.00 -6 104 -5 854 -5 604 -5 354 -5 104 -4 854 -4 604
1.25 -4 873 -4 561 -4 248 -3 936 -3 623 -3 311 -2 998
1.50 -3 642 -3 267 -2 892 -2 517 -2 142 -1 767 -1 392
1.65 -2 904 -2 491 -2 079 -1 666 -1 254 -841 -429
1.75 -2 411 -1 974 -1 536 -1 099 -661 -224 214
2.00 -1 181 -681 -181 319 819 1 319 1 819
2.25 50 613 1 175 1 738 2 300 2 863 3 425
2.50 1 281 1 906 2 531 3 156 3 781 4 406 5 031

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. Overhead costs such as interest on production loans, labour, management and administration will vary to a large extent from producer to producer. Producers will therefore have to deduct the farm business' overhead cost from the gross margins as stipulated in the tables and figures to calculate the net income per crop.
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