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: 2021	R/ton	4 955	4 955	6 700	4 955	4 450
Total deductions	R/ton	714	677	5	865	139
– Transport differential	R/ton	600	600	–	825	100
– Grade differential	R/ton	3	–	–	–	–
– Marketing, handling and statutory levies	R/ton	111	77	5	40	39
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	670	–	–
Net farm gate price	R/ton	4 241	4 212	7 365	4 091	4 311
Gross income	R/ha	R12 723	R12 637	R12 889	R10 227	R7 760
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	37	36	37	29	–
Fertilizer	R/ha	1 877	1 818	1 972	1 591	693
Lime	R/ha	226	226	226	226	–
Seed	R/ha	535	435	911	506	928
Fuel	R/ha	494	503	503	492	472
Herbicide	R/ha	684	680	1 113	647	745
Insecticide	R/ha	116	101	493	132	149
Fungicides	R/ha	598	720	637	394	262
Marketing costs	R/ha	64	88	31	22	–
Repairs and maintenance	R/ha	609	645	617	609	573
Casual labour	R/ha	17	18	12	17	16
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	121	122	115	107	96
Total variable expenditure	R/ha	R5 377	R5 392	R6 668	R4 771	R3 932
Total variable expenditure	R/ton	R1 792	R1 797	R3 810	R1 908	R2 184
3.1 Gross margin	R/ha	R7 346	R7 245	R6 221	R5 455	R3 828
3.2 Gross margin	R/ton	R2 449	R2 415	R3 555	R2 182	R2 127
Break-even yield	T/ha	1.27	1.28	0.91	1.17	0.91
Break-even price	R/ton	R1 792	R1 797	R3 810	R1 908	R2 184

Source: SSK, GSA and BFAP, April 2021.

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

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.
The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
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.