Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – low potential regions)

Area		Southern Cape: Eastern Rûens (low potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.20	2.20	1.50	1.50	1.40
SAFEX simulated / derived price: 2022	R/ton	7 038	7 038	9 364	7 038	6 801
Total deductions	R/ton	937	890	172	882	104
– Transport differential	R/ton	615	615	140	840	100
– Grade differential	R/ton	210	194	–	–	–
– Marketing, handling and statutory levies	R/ton	112	81	32	42	4
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	–	936	–	–
Net farm gate price	R/ton	6 102	6 026	10 129	6 156	6 697
Gross income	R/ha	R13 423	R13 258	R15 193	R9 235	R9 375
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	39	38	44	27	–
Fertilizer	R/ha	3 608	3 424	3 765	2 878	1 442
Lime	R/ha	199	199	199	167	–
Seed	R/ha	523	398	967	493	852
Fuel	R/ha	691	707	710	671	643
Herbicide	R/ha	1 526	841	1 184	567	381
Insecticide	R/ha	206	141	275	102	175
Fungicides	R/ha	468	781	256	269	110
Marketing costs	R/ha	50	68	28	–	–
Repairs and maintenance	R/ha	527	503	546	503	503
Casual labour	R/ha	14	12	14	13	11
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	128	130	123	101	101
Total variable expenditure	R/ha	R7 977	R7 243	R8 109	R5 789	R4 219
Total variable expenditure	R/ton	R3 626	R3 292	R5 406	R3 860	R3 014
3.1 Gross margin	R/ha	R5 446	R6 015	R7 083	R3 445	R5 156
3.2 Gross margin	R/ton	R2 476	R2 734	R4 722	R2 297	R3 683
Break-even yield	T/ha	1.31	1.20	0.80	0.94	0.63
Break-even price	R/ton	R3 626	R3 292	R5 406	R3 860	R3 014

Source: SSK, GSA and BFAP, updated September 2022.

Gross margin per hectare: Southern Cape – Eastern Rûens (low 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.