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	1.40	1.80
SAFEX simulated / derived price: 2022	R/ton	7 038	9 364	6 801
Total deductions	R/ton	944	93	141
– Transport differential	R/ton	615	62	100
– Grade differential	R/ton	210	–	–
– Marketing, handling and statutory levies	R/ton	119	31	41
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	936	–
Net farm gate price	R/ton	6 095	10 207	6 660
Gross income	R/ha	R14 322	R14 290	R11 987
2. Variable expenditures
Contracting	R/ha	–	–	–
Crop insurance	R/ha	37	41	34
Fertilizer	R/ha	4 331	3 998	922
Lime	R/ha	139	139	199
Seed	R/ha	677	1 051	630
Fuel	R/ha	703	499	505
Herbicide	R/ha	1 526	1 184	882
Insecticide	R/ha	206	275	186
Fungicides	R/ha	468	256	249
Marketing costs	R/ha	47	15	–
Repairs and maintenance	R/ha	679	576	601
Casual labour	R/ha	17	19	15
Aerial spray	R/ha	–	–	–
Other expenditure	R/ha	101	90	90
Total variable expenditure	R/ha	R8 931	R8 142	R4 313
Total variable expenditure	R/ton	R3 800	R5 816	R2 396
3.1 Gross margin	R/ha	R5 391	R6 148	R7 674
3.2 Gross margin	R/ton	R2 294	R4 392	R4 263
Break-even yield	T/ha	1.47	0.80	0.65
Break-even price	R/ton	R3 800	R5 816	R2 396

Source: Kaap Agri, Overberg Agri, GSA and BFAP, updated September 2022.

Gross margin per hectare: Western Cape – Darling-vlakte – Hopefield

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.