WINTER CROPS  |  2020 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat, canola and lupins for Darling-vlakte – Hopefield (Sandveld region)
Area Darling-vlakte – Hopefield (Sandveld region)
Crop Wheat Canola Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.35 1.20 1.80
SAFEX simulated / derived price: 2020 R/ton 4 741 5 500 4 000
Total deductions R/ton 722 30 4
– Transport differential R/ton 610
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 109 30 4
Price premiums / Canola back-payment (10% of contracted price) R/ton 550
Net farm gate price R/ton 4 019 6 020 3 996
Gross income R/ha R9 445 R7 224 R7 193

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 25 21 21
Fertilizer R/ha 1 803 1 692 351
Lime R/ha 141 141 201
Seed R/ha 597 852 582
Fuel R/ha 481 342 346
Herbicide R/ha 879 457 530
Insecticide R/ha 123 164 78
Fungicides R/ha 305 418 157
Marketing costs R/ha 42 11
Repairs and maintenance R/ha 617 525 548
Casual labour R/ha 7 7
Aerial spray R/ha
Other expenditure R/ha 94 90
Total variable expenditure R/ha R5 106 R4 717 R2 820
Total variable expenditure R/ton R2 173 R3 931 R1 567
3.1 Gross margin R/ha R4 339 R2 507 R4 373
3.2 Gross margin R/ton R1 846 R2 089 R2 430
Break-even yield T/ha 1.27 0.78 0.71
Break-even price R/ton R2 173 R3 931 R1 567
Source: Kaap Agri, GSA and BFAP, April 2020.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Darling-vlakte – Hopefield

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.35 2.50 2.75 3.00
R3 019 -577 178 932 1 989 2 442 3 197 3 952
R3 269 -202 615 1 432 2 577 3 067 3 884 4 702
R3 519 173 1 053 1 932 3 164 3 692 4 572 5 452
R3 769 548 1 490 2 432 3 752 4 317 5 259 6 202
R4 019 923 1 928 2 932 4 339 4 942 5 947 6 952
R4 269 1 298 2 365 3 432 4 927 5 567 6 634 7 702
R4 519 1 673 2 803 3 932 5 514 6 192 7 322 8 452
R4 769 2 048 3 240 4 432 6 102 6 817 8 009 9 202
R5 019 2 423 3 678 4 932 6 689 7 442 8 697 9 952
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.50 0.75 1.00 1.20 1.50 1.75 2.00
R5 020 -2 207 -952 303 1 307 2 813 4 068 5 323
R5 270 -2 082 -765 553 1 607 3 188 4 506 5 823
R5 520 -1 957 -577 803 1 907 3 563 4 942 6 323
R5 770 -1 832 -390 1 053 2 207 3 938 5 381 6 823
R6 020 -1 707 -202 1 303 2 507 4 313 5 818 7 323
R6 270 -1 582 -15 1 553 2 807 4 688 6 256 7 823
R6 520 -1 457 173 1 803 3 107 5 063 6 693 8 323
R6 770 -1 332 360 2 053 3 407 5 438 7 131 8 823
R7 020 -1 207 548 2 303 3 707 5 813 7 568 9 323
Canola margin above/below wheat
Yield Price (R/ton)
R5 270 R5 520 R5 770 R6 020 R6 270 R6 520 R6 770
0.25 -7 739 -7 676 -7 614 -7 551 -7 489 -7 426 -7 364
0.50 -6 421 -6 296 -6 171 -6 046 -5 921 -5 796 -5 671
0.75 -5 104 -4 916 -4 729 -4 541 -4 354 -4 166 -3 979
1.00 -3 786 -3 536 -3 286 -3 036 -2 786 -2 536 -2 286
1.20 -2 732 -2 432 -2 132 -1 832 -1 532 -1 232 -932
1.50 -1 151 -776 -401 -26 349 724 1 099
1.75 166 604 1 041 1 479 1 916 2 354 2 791
2.00 1 484 1 984 2 484 2 984 3 484 3 984 4 484
2.25 2 801 3 364 3 926 4 489 5 051 5 614 6 176

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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