WINTER CROPS  |  2020 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – high potential regions)
Area Southern Cape: Eastern Rûens (high potential)
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 3.00 1.75 2.50 1.80
SAFEX simulated / derived price: 2020 R/ton 4 741 4 741 5 500 3 500 4 000
Total deductions R/ton 722 651 5 4 4
– Transport differential R/ton 610 610
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 109 41 5 4 4
Price premiums / Canola back-payment (10% of contracted price) R/ton 65 550
Net farm gate price R/ton 4 019 4 031 6 045 3 497 3 996
Gross income R/ha R12 058 R12 093 R10 579 R8 741 R7 193

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 35 35 30 25
Fertilizer R/ha 1 707 1 653 1 729 1 454 675
Lime R/ha 135 135 135 135
Seed R/ha 542 451 852 500 1 170
Fuel R/ha 475 484 485 474 454
Herbicide R/ha 1 136 859 970 602 710
Insecticide R/ha 163 178 613 163 79
Fungicides R/ha 549 1 035 388 591 209
Marketing costs R/ha 54 68 17
Repairs and maintenance R/ha 607 641 616 607 573
Casual labour R/ha 18 19 13 18 17
Aerial spray R/ha
Other expenditure R/ha 111 113 106 95 95
Total variable expenditure R/ha R5 531 R5 671 R5 952 R4 663 R3 980
Total variable expenditure R/ton R1 844 R1 890 R3 401 R1 865 R2 211
3.1 Gross margin R/ha R6 527 R6 422 R4 627 R4 079 R3 213
3.2 Gross margin R/ton R2 176 R2 141 R2 644 R1 631 R1 785
Break-even yield T/ha 1.38 1.41 0.98 1.33 1.00
Break-even price R/ton R1 844 R1 890 R3 401 R1 865 R2 211
Source: SSK, GSA and BFAP, April 2020.
Gross margin comparison – Baseline: Southern Cape (Eastern Rûens – high potential)
Gross margin comparison – Baseline: Southern Cape (Eastern Ruens - high potential region)

Gross margin per hectare: Southern Cape – Eastern Rûens (high potential)

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R3 019 1 263 2 017 2 772 3 527 4 282 5 037 5 791
R3 269 1 825 2 642 3 460 4 277 5 094 5 912 6 729
R3 519 2 388 3 267 4 147 5 027 5 907 6 787 7 666
R3 769 2 950 3 892 4 835 5 777 6 719 7 662 8 604
R4 019 3 513 4 517 5 522 6 527 7 532 8 537 9 541
R4 269 4 075 5 142 6 210 7 277 8 344 9 412 10 479
R4 519 4 638 5 767 6 897 8 027 9 157 10 287 11 416
R4 769 5 200 6 392 7 585 8 777 9 969 11 162 12 354
R5 019 5 763 7 017 8 272 9 527 10 782 12 037 13 291
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R3 031 1 149 1 906 2 664 3 422 4 180 4 937 5 695
R3 281 1 711 2 531 3 352 4 172 4 992 5 812 6 633
R3 531 2 274 3 156 4 039 4 922 5 805 6 687 7 570
R3 781 2 836 3 781 4 727 5 672 6 617 7 562 8 508
R4 031 3 399 4 406 5 414 6 422 7 430 8 437 9 445
R4 281 3 961 5 031 6 102 7 172 8 242 9 312 10 383
R4 531 4 524 5 656 6 789 7 922 9 055 10 187 11 320
R4 781 5 086 6 281 7 477 8 672 9 867 11 062 12 258
R5 031 5 649 6 906 8 164 9 422 10 680 11 937 13 195
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R5 045 -907 354 1 615 2 877 4 138 5 399 6 660
R5 295 -657 666 1 990 3 314 4 638 5 962 7 285
R5 545 -407 979 2 365 3 752 5 138 6 524 7 910
R5 795 -157 1 291 2 740 4 189 5 638 7 087 8 535
R6 045 93 1 604 3 115 4 627 6 138 7 649 9 160
R6 295 343 1 916 3 490 5 064 6 638 8 212 9 785
R6 545 593 2 229 3 865 5 502 7 138 8 774 10 410
R6 795 843 2 541 4 240 5 939 7 638 9 337 11 660
R7 045 1 093 2 854 4 615 6 377 8 138 9 899 11 660
Canola margin above/below wheat
Yield Price (R/ton)
R5 295 R5 545 R5 795 R6 045 R6 295 R6 545 R6 795
0.75 -8 508 -8 320 -8 133 -7 945 -7 758 -7 570 -7 383
1.00 -7 184 -6 934 -6 684 -6 434 -6 184 -5 934 -5 684
1.25 -5 860 -5 548 -5 235 -4 923 -4 610 -4 298 -3 985
1.50 -4 537 -4 162 -3 787 -3 412 -3 037 -2 662 -2 287
1.75 -3 213 -2 775 -2 338 -1 900 -1 463 -1 025 -588
2.00 -1 889 -1 389 -889 -389 111 611 1 111
2.25 -565 -3 560 1 122 1 685 2 247 2 810
2.50 758 1 383 2 008 2 633 3 258 3 883 4 508
2.75 2 082 2 770 3 457 4 145 4 832 5 520 6 207

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