Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Bredasdorp region)

Area		Southern Cape: Bredasdorp
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	1.65	2.40	1.40
SAFEX simulated / derived price: 2022	R/ton	7 038	7 038	9 364	7 038	6 801
Total deductions	R/ton	941	890	168	882	100
– Transport differential	R/ton	615	615	137	840	100
– Grade differential	R/ton	210	194	–	–	–
– Marketing, handling and statutory levies	R/ton	116	81	31	42	41
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	936	–	–
Net farm gate price	R/ton	6 098	6 026	10 132	6 156	6 660
Gross income	R/ha	R18 293	R18 079	R16 718	R14 775	R9 323
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	53	52	48	42	27
Fertilizer	R/ha	4 743	4 529	5 109	3 804	1 581
Lime	R/ha	199	199	199	167	167
Seed	R/ha	681	499	1 576	521	841
Fuel	R/ha	723	739	716	707	643
Herbicide	R/ha	1 735	1 234	1 230	839	758
Insecticide	R/ha	279	281	474	202	186
Fungicides	R/ha	569	848	565	416	190
Marketing costs	R/ha	60	74	17	–	–
Repairs and maintenance	R/ha	719	654	662	719	419
Casual labour	R/ha	17	20	21	19	15
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	128	130	123	101	101
Total variable expenditure	R/ha	R9 905	R9 258	R10 739	R7 537	R4 926
Total variable expenditure	R/ton	R3 302	R3 086	R6 509	R3 141	R3 519
3.1 Gross margin	R/ha	R8 388	R8 822	R5 979	R7 238	R4 397
3.2 Gross margin	R/ton	R2 796	R2 941	R3 624	R3 016	R3 141
Break-even yield	T/ha	1.62	1.54	1.06	1.22	0.74
Break-even price	R/ton	R3 302	R3 086	R6 509	R3 141	R3 519

Source: Overberg Agri, GSA and BFAP, updated September 2021.

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

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.