WINTER CROPS  |  2020 Income and Cost Budgets

Free State – dryland

Income and cost budgets for wheat for Eastern and Central Free State
Area Eastern Free State Central Free State
Crop Wheat Wheat
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.50 2.50
SAFEX simulated / derived price: 2020 R/ton 4 741 4 741
Total deductions R/ton 387 388
– Transport differential R/ton 289 291
– Grade differential R/ton 3 3
– Marketing, handling and statutory levies R/ton 95 95
Price premiums / Canola back-payment (10% of contracted price) R/ton
Net farm gate price R/ton 4 354 4 353
Gross income R/ha R10 885 R10 882

2. Variable expenditures

Contracting R/ha 788 788
Crop insurance R/ha 337 871
Fertilizer R/ha 1 614 1 422
Lime R/ha 605 605
Seed R/ha 420 420
Fuel R/ha 793 853
Herbicide R/ha 326 313
Insecticide R/ha 173 173
Fungicides R/ha
Marketing costs R/ha 42 42
Repairs and maintenance R/ha 562 560
Casual labour R/ha
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R5 660 R6 045
Total variable expenditure R/ton R2 264 R2 418
3.1 Gross margin R/ha R5 225 R4 837
3.2 Gross margin R/ton R2 090 R1 935
Break-even yield T/ha 1.30 1.39
Break-even price R/ton R2 264 R2 418
Source: VKB, GSA and BFAP, April 2020.
Gross margin comparison – Baseline: Free State (Eastern and Central regions)
Gross margin comparison – Baseline: Free State (Eastern and Central regions)

Gross margin per hectare: Central Free State

Wheat sensitivity analysis: Eastern Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 354 210 1 048 1 887 2 725 3 564 4 403 5 241
R3 604 647 1 548 2 449 3 350 4 251 5 153 6 054
R3 854 1 085 2 048 3 012 3 975 4 939 5 903 6 866
R4 104 1 522 2 548 3 574 4 600 5 626 6 653 7 679
R4 354 1 960 3 048 4 137 5 225 6 314 7 403 8 491
R4 604 2 397 3 548 4 699 5 850 7 001 8 153 9 304
R4 854 2 835 4 048 5 262 6 475 7 689 8 903 10 116
R5 104 3 272 4 548 5 824 7 100 8 376 9 653 10 929
R5 354 3 710 5 048 6 387 7 725 9 064 10 403 11 741
Wheat sensitivity analysis: Eastern Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 353 -178 661 1 499 2 337 3 175 4 013 4 851
R3 603 260 1 161 2 061 2 962 3 863 4 763 5 664
R3 853 697 1 661 2 624 3 587 4 550 5 513 6 476
R4 103 1 135 2 161 3 186 4 212 5 238 6 263 7 289
R4 353 1 572 2 661 3 749 4 837 5 925 7 013 8 101
R4 603 2 010 3 161 4 311 5 462 6 613 7 763 8 914
R4 853 2 447 3 661 4 874 6 087 7 300 8 513 9 726
R5 103 2 885 4 161 5 436 6 712 7 988 9 263 10 539
R5 353 3 322 4 661 5 999 7 337 8 675 10 013 11 351

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.
Subscribe: receive ICBs via e-mail