WINTER CROPS  |  2021 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: 2021 R/ton 4 955 6 700 4 450
Total deductions R/ton 717 30 139
– Transport differential R/ton 600 100
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 114 30 39
Price premiums / Canola back-payment (10% of contracted price) R/ton 670
Net farm gate price R/ton 4 238 7 340 4 311
Gross income R/ha R9 959 R8 808 R7 760

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 26 25 22
Fertilizer R/ha 2 053 1 929 409
Lime R/ha 127 127 181
Seed R/ha 615 911 588
Fuel R/ha 500 355 360
Herbicide R/ha 923 575 667
Insecticide R/ha 119 176 84
Fungicides R/ha 361 436 164
Marketing costs R/ha 44 12
Repairs and maintenance R/ha 596 547 571
Casual labour R/ha 8 8
Aerial spray R/ha
Other expenditure R/ha 94 94
Total variable expenditure R/ha R5 458 R5 194 R3 053
Total variable expenditure R/ton R2 323 R4 328 R1 696
3.1 Gross margin R/ha R4 501 R3 614 R4 708
3.2 Gross margin R/ton R1 915 R3 012 R2 615
Break-even yield T/ha 1.29 0.71 0.71
Break-even price R/ton R2 323 R4 328 R1 696
Source: Kaap Agri, GSA and BFAP, April 2021.
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 238 -601 208 1 018 2 151 2 637 3 446 4 256
R3 488 -226 646 1 518 2 739 3 262 4 134 5 006
R3 738 149 1 083 2 018 3 326 3 887 4 821 5 756
R3 988 524 1 521 2 518 3 914 4 512 5 509 6 506
R4 238 899 1 958 3 018 4 501 5 137 6 196 7 256
R4 488 1 274 2 396 3 518 5 089 5 762 6 884 8 006
R4 738 1 649 2 833 4 018 5 676 6 387 7 571 8 756
R4 988 2 024 3 271 4 518 6 264 7 012 8 259 9 506
R5 238 2 399 3 708 5 018 6 851 7 637 8 946 10 256
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.50 0.75 1.00 1.20 1.50 1.75 2.00
R6 340 -2 024 -439 1 146 2 414 4 316 5 901 7 486
R6 590 -1 899 -251 1 396 2 714 4 691 6 339 7 986
R6 840 -1 774 -64 1 646 3 014 5 066 6 776 8 486
R7 090 -1 649 124 1 896 3 314 5 441 7 214 8 986
R7 340 -1 524 311 2 146 3 614 5 816 7 651 9 486
R7 590 -1 399 499 2 396 3 914 6 191 8 089 9 986
R7 840 -1 274 686 2 646 4 214 6 566 8 526 10 486
R8 090 -1 149 874 2 896 4 514 6 941 8 964 10 986
R8 340 -1 024 1 061 3 146 4 814 7 316 9 401 11 486
Canola margin above/below wheat
Yield Price (R/ton)
R6 590 R6 840 R7 090 R7 340 R7 590 R7 840 R8 090
0.25 -8 047 -7 985 -7 922 -7 860 -7 797 -7 735 -7 672
0.50 -6 400 -6 275 -6 150 -6 025 -5 900 -5 775 -5 650
0.75 -4 752 -4 565 -4 377 -4 190 -4 002 -3 815 -3 627
1.00 -3 105 -2 855 -2 605 -2 355 -2 105 -1 855 -1 605
1.20 -1 787 -1 487 -1 187 -887 -587 -287 13
1.50 190 565 940 1 315 1 690 2 065 2 440
1.75 1 838 2 275 2 713 3 150 3 588 4 025 4 463
2.00 3 485 3 985 4 485 4 985 5 485 5 985 6 485
2.25 5 133 5 695 6 258 6 820 7 383 7 945 8 508

Notes

  • 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.
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