INCOME & COST BUDGETS  |  Summer Crops 2020/2021

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 6.50 2.50 4.00 6.00 2.00
SAFEX simulated price / producer price: 2021 R/ton 2 633 5 897 2 926 2 633 5 897
Total deductions R/ton 304 139 63 353 139
– Transport differential R/ton 244 – – 293 –
– Grade differential R/ton – – – – –
– Marketing and handling R/ton 60 139 63 60 139
Price premiums R/ton – – – – –
Net farm gate price R/ton 2 329 5 758 2 863 2 280 5 758
Gross income R/ha R15 137 R14 395 R11 454 R13 678 R11 516

2. Variable expenditures
Contracting R/ha – – – – –
Crop insurance R/ha 575 1 180 344 520 944
Fertilizer R/ha 3 309 1 093 1 754 3 096 990
Lime R/ha 613 – 613 613 –
Seed R/ha 2 487 1 091 540 2 211 1 000
Fuel R/ha 1 047 558 861 892 540
Herbicide R/ha 1 192 1 387 714 1 192 1 387
Insecticide / Fungicides R/ha 544 957 836 544 957
Marketing costs R/ha – – – – –
Repairs and maintenance R/ha 714 443 685 706 440
Casual labour R/ha 178 – 178 178 –
Aerial spray R/ha – – – – –
Other expenditure R/ha – – 200 – –
Total variable expenditure R/ha R10 659 R6 710 R6 725 R9 951 R6 259
Total variable expenditure R/ton R1 640 R2 684 R1 681 R1 659 R3 129
3.1 Gross margin R/ha R4 478 R7 686 R4 729 R3 727 R5 629
3.2 Gross margin R/ton R689 R3 074 R1 182 R621 R2 629
Break-even yield T/ha 4.58 1.17 2.35 4.37 1.09
Break-even price R/ton R1 640 R2 684 R1 681 R1 659 R3 129
Source: BFAP, GSA and individual farmers – 2020.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison - Baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Maize sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 5.00 5.50 6.00 6.50 7.00 7.50 8.00
R1 929 -1 015 -51 914 1 878 2 842 3 807 5 771
R2 029 -515 499 1 514 2 528 3 542 4 557 5 571
R2 129 -15 1 049 2 114 3 178 4 242 5 307 6 371
R2 229 485 1 599 2 714 3 828 4 942 6 057 7 171
R2 329 985 2 149 3 314 4 478 5 642 6 807 7 971
R2 429 1 485 2 699 3 914 5 128 6 342 7 557 8 771
R2 529 1 985 3 249 4 514 5 778 7 042 8 307 9 571
R2 629 2 485 3 799 5 114 6 428 7 742 9 057 10 371
R2 729 2 985 4 349 5 714 7 078 8 442 9 807 11 171
Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R5 358 2 667 4 007 5 346 6 686 8 025 9 365 10 704
R5 458 2 842 4 207 5 571 6 936 8 300 9 665 11 029
R5 558 3 017 4 407 5 796 7 186 8 575 9 965 11 354
R5 658 3 192 4 607 6 021 7 436 8 850 10 265 11 679
R5 758 3 367 4 807 6 246 7 686 9 125 10 565 12 004
R5 858 3 542 5 007 6 471 7 936 9 400 10 865 12 329
R5 958 3 717 5 207 6 696 8 186 9 675 11 165 12 654
R6 058 3 892 5 407 6 921 8 436 9 950 11 465 12 979
R6 158 4 067 5 607 7 146 8 686 10 225 11 765 13 304
Maize sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 4.50 5.00 5.50 6.00 6.50 7.00 7.50
R1 880 -1 492 -553 387 1 327 2 267 3 207 4 147
R1 980 -1 042 -53 937 1 927 2 917 3 907 4 897
R2 080 -592 447 1 487 2 527 3 567 4 607 5 647
R2 180 -142 947 2 037 3 127 4 217 5 307 6 397
R2 280 308 1 447 2 587 3 727 4 867 6 007 7 147
R2 380 758 1 947 3 137 4 327 5 517 6 707 7 897
R2 480 1 208 2 447 3 687 4 927 6 167 7 407 8 647
R2 580 1 658 2 947 4 237 5 527 6 817 8 107 9 397
R2 680 2 108 3 447 4 787 6 127 7 467 8 807 10 147
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R5 358 439 1 779 3 118 4 458 5 797 7 137 8 476
R5 458 564 1 929 3 293 4 658 6 022 7 387 8 751
R5 558 689 2 079 3 468 4 858 6 247 7 637 9 026
R5 658 814 2 229 3 643 5 058 6 472 7 887 9 301
R5 758 939 2 379 3 818 5 258 6 697 8 137 9 576
R5 858 1 064 2 529 3 993 5 458 6 922 8 387 9 851
R5 958 1 189 2 679 4 168 5 658 7 147 8 637 10 126
R6 058 1 314 2 829 4 343 5 858 7 372 8 887 10 401
R6 158 1 439 2 979 4 518 6 058 7 597 9 137 10 676
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R5 458 R5 558 R5 658 R5 758 R5 858 R5 958 R6 058
1.50 -3 000 -2 850 -2 700 -2 550 -2 400 -2 250 -2 100
1.75 -1 636 -1 461 -1 286 -1 111 -936 -761 -586
2.00 -271 -71 129 329 529 729 929
2.25 1 093 1 318 1 543 1 768 1 993 2 218 2 443
2.50 2 458 2 708 2 958 3 208 3 458 3 708 3 958
2.75 3 822 4 097 4 372 4 647 4 922 5 197 5 472
3.00 5 187 5 487 5 787 6 087 6 387 6 687 6 987
3.25 6 551 6 876 7 201 7 526 7 851 8 176 8 501
3.50 7 916 8 266 8 616 8 966 9 316 9 666 10 016
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R5 458 R5 558 R5 658 R5 758 R5 858 R5 958 R6 058
1.00 -4 528 -4 428 -4 328 -4 228 -4 128 -4 028 -3 928
1.25 -3 163 -3 038 -2 913 -2 788 -2 663 -2 538 -2 413
1.50 -1 799 -1 649 -1 499 -1 349 -1 199 -1 049 -899
1.75 -434 -259 -84 91 266 441 616
2.00 930 1 130 1 330 1 530 1 730 1 930 2 130
2.25 2 295 2 520 2 745 2 970 3 195 3 420 3 645
2.50 3 660 3 910 4 160 4 410 4 660 4 910 5 160
2.75 5 024 5 299 5 574 5 849 6 124 6 399 6 674
3.00 6 389 6 689 6 989 7 289 7 589 7 889 8 189

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 (Middelburg/Trichard) N:P:K – 130:21:30. Soybeans (Middelburg/Trichard) N:P:K – 10:14:20. Grain sorghum N:P:K – 87:8:11. Maize (Ermelo) N:P:K – 117:21:30. Soybeans (Ermelo) N:P:K – 10:12:18.
  • 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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