WINTER CROPS  |  2020 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.75
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 R13 263 R10 535

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 35 30
Fertilizer R/ha 2 352 2 171
Lime R/ha 201 201
Seed R/ha 691 852
Fuel R/ha 480 368
Herbicide R/ha 1 025 527
Insecticide R/ha 123 164
Fungicides R/ha 714 418
Marketing costs R/ha 59 17
Repairs and maintenance R/ha 757 669
Casual labour R/ha
Aerial spray R/ha
Other expenditure R/ha 94 90
Total variable expenditure R/ha R6 530 R5 505
Total variable expenditure R/ton R1 979 R3 146
3.1 Gross margin R/ha R6 733 R5 030
3.2 Gross margin R/ton R2 040 R2 874
Break-even yield T/ha 1.62 0.91
Break-even price R/ton R1 979 R3 146
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 – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R3 019 1 018 1 773 2 527 3 433 4 037 4 792 5 547
R3 269 1 643 2 460 3 277 4 258 4 912 5 729 6 547
R3 519 2 268 3 148 4 027 5 083 5 787 6 667 7 547
R3 769 2 893 3 835 4 777 5 908 6 662 7 604 8 547
R4 019 3 518 4 523 5 527 6 733 7 537 8 542 9 547
R4 269 4 143 5 210 6 277 7 558 8 412 9 479 10 547
R4 519 4 768 5 898 7 027 8 383 9 287 10 417 11 547
R4 769 5 393 6 585 7 777 9 208 10 162 11 354 12 547
R5 019 6 018 7 273 8 527 10 033 11 037 12 292 13 547
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R5 020 -485 770 2 025 3 280 4 535 5 790 7 045
R5 270 -235 1 082 2 400 3 717 5 035 6 352 7 670
R5 520 15 1 395 2 775 4 155 5 535 6 915 8 295
R5 770 265 1 707 3 150 4 592 6 035 7 477 8 920
R6 020 515 2 020 3 525 5 030 6 535 8 040 9 545
R6 270 765 2 332 3 900 5 467 7 035 8 602 10 170
R6 520 1 015 2 645 4 275 5 905 7 535 9 165 10 795
R6 770 1 265 2 957 4 650 6 342 8 035 9 727 11 420
R7 020 1 515 3 270 5 025 6 780 8 535 10 290 12 045
Canola margin above/below wheat
Yield Price (R/ton)
R5 270 R5 520 R5 770 R6 020 R6 270 R6 520 R6 770
0.75 -8 286 -8 098 -7 911 -7 723 -7 536 -7 348 -7 161
1.00 -6 968 -6 718 -6 468 -6 218 -5 968 -5 718 -5 468
1.25 -5 651 -5 338 -5 026 -4 713 -4 401 -4 088 -3 776
1.50 -4 333 -3 958 -3 583 -3 208 -2 833 -2 458 -2 083
1.75 -3 016 -2 578 -2 141 -1 703 -1 266 -828 -391
2.00 -1 698 -1 198 -698 -198 302 802 1 302
2.25 -381 182 744 1 307 1 869 2 432 2 994
2.50 937 1 562 2 187 2 812 3 437 4 062 4 687
2.50 937 1 562 2 187 2 812 3 437 4 062 4 687

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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