INCOME & COST BUDGETS  |  Summer Crops 2020/2021

KwaZulu-Natal (Bergville) – irrigation

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bergrivier)
Area KwaZulu-Natal: Bergrivier
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2021 R/ton 2 633 5 897
Total deductions R/ton 389 139
– Transport differential R/ton 335
– Grade differential R/ton
– Marketing and handling R/ton 60 139
Price premiums R/ton
Net farm gate price R/ton 2 238 5 758
Gross income R/ha R26 853 R23 033

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 020 3 225
Fertilizer R/ha 6 022 2 230
Lime R/ha 613
Seed R/ha 3 980 1 881
Fuel R/ha 1 220 1 227
Herbicide R/ha 1 192 1 387
Insecticide / Fungicides R/ha 544 957
Marketing costs R/ha
Repairs and maintenance R/ha 855 933
Casual labour R/ha 205
Aerial spray R/ha
Irrigation electricity R/ha 2 135 1 817
Water R/ha 2 018 1 717
Other expenditure: scheduling/irrigation equipment R&M R/ha 554 554
Total variable expenditure R/ha R20 358 R15 929
Total variable expenditure R/ton R1 696 R3 982
3.1 Gross margin R/ha R6 495 R7 104
3.2 Gross margin R/ton R541 R1 776
Break-even yield T/ha 9.10 2.77
Break-even price R/ton R1 696 R3 982
Source: BFAP, GSA and individual farmers – 2020.
Gross margin comparison – baseline: KwaZulu-Natal (Bergrivier)
Figure 3.2: Gross margin comparison – Baseline: KwaZulu-Natal irrigation

Gross margin per hectare: KwaZulu-Natal (Bergville)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R1 838 -1 061 -143 776 1 695 2 614 3 533 4 452
R1 938 -11 957 1 926 2 895 3 864 4 933 5 802
R2 038 1 039 2 057 3 076 4 095 5 114 6 133 7 152
R2 138 2 089 3 157 4 226 5 295 6 364 7 433 8 502
R2 238 3 139 4 257 5 376 6 495 7 614 8 733 9 852
R2 338 4 189 5 357 6 526 7 695 8 864 10 033 11 202
R2 438 5 239 6 457 7 676 8 895 10 114 11 333 12 552
R2 538 6 289 7 557 8 826 10 095 11 364 12 663 13 902
R2 638 7 339 8 657 9 976 11 295 12 614 13 933 15 252
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R5 358 1 485 2 825 4 164 5 504 6 843 8 183 9 523
R5 458 1 810 3 175 4 539 5 904 7 268 8 633 9 998
R5 558 2 135 3 525 4 914 6 304 7 693 9 083 10 473
R5 658 2 460 3 875 5 289 6 704 8 118 9 533 10 948
R5 758 2 785 4 225 5 664 7 104 8 543 9 983 11 423
R5 858 3 110 4 575 6 039 7 504 8 968 10 433 11 898
R5 958 3 435 4 925 6 414 7 904 9 393 10 883 12 373
R6 058 3 760 5 275 6 789 8 304 9 818 11 333 12 848
R6 158 4 085 5 625 7 164 8 704 10 243 11 783 13 323
Soybeans margin above/below maize
Yield Price (R/ton)
R5 458 R5 558 R5 658 R5 758 R5 858 R5 958 R6 058
3.00 -6 049 -5 749 -5 449 -5 149 -4 849 -4 549 -5 249
3.25 -4 685 -4 360 -4 035 -3 710 -3 385 -3 060 -2 735
3.50 -3 320 -2 970 -2 620 -2 270 -1 920 -1 570 -1 220
3.75 -1 956 -1 581 -1 206 -831 -456 -81 294
4.00 -691 -191 209 609 1 009 1 409 1 809
4.25 773 1 198 1 623 2 048 2 473 2 898 3 323
4.50 2 138 2 588 3 038 3 488 3 938 4 388 4 838
4.75 3 502 3 977 4 452 4 927 5 402 5 877 6 352
5.00 4 867 5 367 5 867 6 367 6 867 7 367 7 867

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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 212:49:56. Soybeans N:P:K – 20:36:40.
  • Other macro- and microelements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • 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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