WINTER CROPS  |  2020 Income and Cost Budgets

Limpopo – irrigation

Income and cost budgets for wheat and barley for Limpopo
Area Limpopo
Crop Wheat Barley
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 6.50 6.00
SAFEX simulated price / producer price: 2019 R/ton 4 741 4 741
Total deductions R/ton 336 265
– Transport differential R/ton 224 224
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 109 41
Price premiums / Canola back-payment (10% of contracted price) R/ton 65
Net farm gate price R/ton 4 405 4 270
Gross income R/ha R28 634 R25 620

2. Variable expenditures

Contracting R/ha 850 850
Crop insurance R/ha 1 603 1 435
Fertilizer R/ha 3 738 3 243
Lime R/ha 530 530
Seed R/ha 1 224 1 188
Fuel R/ha 1 078 1 069
Herbicide R/ha 237 382
Insecticide R/ha 151 153
Fungicides R/ha
Marketing costs R/ha 117 135
Repairs and maintenance R/ha 651 648
Casual labour R/ha
Irrigation: Water R/ha 1 453 1 237
Irrigation: Electricity R/ha 2 754 2 346
Aerial spray R/ha 320 320
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 511 465
Total variable expenditure R/ha R15 216 R14 002
Total variable expenditure R/ton R2 341 R2 334
3.1 Gross margin R/ha R13 417 R11 618
3.2 Gross margin R/ton R2 064 R1 936
Break-even yield T/ha 3.45 3.28
Break-even price R/ton R2 341 R2 334
Source: GSA, BFAP and Obaro, April 2020.
Gross margin comparison – Baseline: Limpopo
Gross margin comparison – Baseline: Limpopo irrigation

Gross margin per hectare: Limpopo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.75 6.00 6.25 6.50 6.75 7.00 7.25
R3 405 4 363 5 215 6 066 6 917 7 769 8 620 9 471
R3 655 5 801 6 715 7 629 8 542 9 456 10 370 11 284
R3 905 7 238 8 215 9 191 10 167 11 144 12 120 13 096
R4 155 8 676 9 715 10 754 11 792 12 831 13 870 14 909
R4 405 10 113 11 215 12 316 13 417 14 519 15 620 16 721
R4 655 11 551 12 715 13 879 15 042 16 206 17 370 18 534
R4 905 12 988 14 215 15 441 16 667 17 894 19 120 20 346
R5 155 14 426 15 715 17 004 18 292 19 581 20 870 22 159
R5 405 15 863 17 215 18 566 19 917 21 269 22 620 23 971
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R3 270 3 166 3 983 4 801 5 618 6 436 7 253 8 071
R3 520 4 478 5 358 6 238 7 118 7 998 8 878 9 758
R3 770 5 791 6 733 7 676 8 618 9 561 10 503 11 446
R4 020 7 103 8 108 9 113 10 118 11 123 12 128 13 133
R4 270 8 416 9 483 10 551 11 618 12 686 13 753 14 821
R4 520 9 728 10 858 11 988 13 118 14 248 15 378 16 508
R4 770 11 041 12 233 13 426 14 618 15 811 17 003 18 196
R5 020 12 353 13 608 14 863 16 118 17 373 18 628 19 883
R5 270 13 666 14 983 16 301 17 618 18 936 20 253 21 571

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.
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