Eastern Free State – irrigation

Gross margin per hectare: Free State

Notes

• Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
• 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 producers to allocate them individually.
• The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
• Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
• The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
• 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.