WINTER CROPS  |  2020 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Rooi Karoo
Area Rooi Karoo
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.15 1.10
SAFEX simulated / derived price: 2020 R/ton 4 741 5 500
Total deductions R/ton 722 30
– Transport differential R/ton 610
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 109 30
Price premiums / Canola back-payment (10% of contracted price) R/ton 550
Net farm gate price R/ton 4 019 6 020
Gross income R/ha R8 641 R6 622

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 23 19
Fertilizer R/ha 1 411 1 369
Lime R/ha 151 151
Seed R/ha 565 852
Fuel R/ha 456 368
Herbicide R/ha 805 457
Insecticide R/ha 123 164
Fungicides R/ha 305 418
Marketing costs R/ha 39 10
Repairs and maintenance R/ha 612 544
Casual labour R/ha 7
Aerial spray R/ha
Other expenditure R/ha 94
Total variable expenditure R/ha R4 583 R4 357
Total variable expenditure R/ton R2 131 R3 961
3.1 Gross margin R/ha R4 059 R2 265
3.2 Gross margin R/ton R1 888 R2 059
Break-even yield T/ha 1.14 0.72
Break-even price R/ton R2 131 R3 961
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 – Rooi Karoo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.15 2.25 2.50 2.75
R3 019 -54 701 1 456 1 909 2 211 2 965 3 720
R3 269 321 1 138 1 956 2 446 2 773 3 590 4 408
R3 519 696 1 576 2 456 2 984 3 336 4 215 5 095
R3 769 1 071 2 013 2 956 3 521 3 898 4 840 5 783
R4 019 1 446 2 451 3 456 4 059 4 461 5 465 6 470
R4 269 1 821 2 888 3 956 4 596 5 023 6 090 7 158
R4 519 2 196 3 326 4 456 5 134 5 586 6 715 7 845
R4 769 2 571 3 763 4 956 5 671 6 148 7 340 8 533
R5 019 2 946 4 201 5 456 6 209 6 711 7 965 9 220
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.50 0.75 1.00 1.10 1.25 1.50 1.75
R5 020 -1 847 -592 663 1 165 1 918 3 173 4 428
R5 270 -1 722 -405 913 1 440 2 230 3 548 4 865
R5 520 -1 597 -217 1 163 1 715 2 543 3 923 5 303
R5 770 -1 472 -30 1 413 1 990 2 855 4 298 5 740
R6 020 -1 347 158 1 663 2 265 3 168 4 673 6 178
R6 270 -1 222 345 1 913 2 540 3 480 5 048 6 615
R6 520 -1 097 533 2 163 2 815 3 793 5 423 7 053
R6 770 -972 720 2 413 3 090 4 105 5 798 7 490
R7 020 -847 908 2 663 3 365 4 418 6 173 7 928
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 -7 099 -7 036 -6 974 -6 911 -6 849 -6 786 -6 724
0.50 -5 781 -5 656 -5 531 -5 406 -5 281 -5 156 -5 031
0.75 -4 464 -4 276 -4 089 -3 901 -3 714 -3 526 -3 339
1.00 -3 146 -2 896 -2 646 -2 396 -2 146 -1 896 -1 646
1.10 -2 619 -2 344 -2 069 -1 794 -1 519 -1 244 -969
1.25 -1 828 -1 516 -1 203 -891 -578 -266 47
1.50 -511 -136 239 614 989 1 364 1 739
1.75 807 1 244 1 682 2 119 2 557 2 994 3 432
2.00 2 124 2 624 3 124 3 624 4 124 4 624 5 124

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