WINTER CROPS  |  2022 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat, canola and oats for Moorreesburg, Malmesbury and Porterville
Area Moorreesburg, Malmesbury and Porterville
Crop Wheat Canola Oats
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 1.65 2.70
SAFEX simulated / derived price: 2022 R/ton 7 038 9 364 7 038
Total deductions R/ton 944 84 882
– Transport differential R/ton 615 53 840
– Grade differential R/ton 210
– Marketing, handling and statutory levies R/ton 119 31 42
Price premiums / Canola back-payment (10% of contracted price) R/ton 936
Net farm gate price R/ton 6 095 10 216 6 156
Gross income R/ha R18 284 R16 857 R16 622

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 48 48 48
Fertilizer R/ha 5 117 4 598 3 606
Lime R/ha 199 167 204
Seed R/ha 749 1 051 503
Fuel R/ha 689 595 648
Herbicide R/ha 1 735 1 230 927
Insecticide R/ha 279 474 205
Fungicides R/ha 569 362 541
Marketing costs R/ha 60 17
Repairs and maintenance R/ha 761 670 689
Casual labour R/ha 17 21 19
Aerial spray R/ha
Other expenditure R/ha 101 90 90
Total variable expenditure R/ha R10 323 R9 323 R7 481
Total variable expenditure R/ton R3 441 R5 650 R2 771
3.1 Gross margin R/ha R7 961 R7 534 R9 142
3.2 Gross margin R/ton R2 654 R4 566 R3 386
Break-even yield T/ha 1.69 0.91 1.22
Break-even price R/ton R3 441 R5 650 R2 771
Source: Kaap Agri, GSA and BFAP, updated September 2022.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Moorreesburg, Malmesbury and Porterville

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R5 095 1 140 2 414 3 687 4 961 6 234 7 508 8 782
R5 345 1 702 3 039 4 375 5 711 7 047 8 383 9 719
R5 595 2 265 3 664 5 062 6 461 7 859 9 258 10 657
R5 845 2 827 4 289 5 750 7 211 8 672 10 133 11 594
R6 095 3 390 4 914 6 437 7 961 9 484 11 008 12 532
R6 345 3 952 5 539 7 125 8 711 10 297 11 883 13 469
R6 595 4 515 6 164 7 812 9 461 11 109 12 758 14 407
R6 845 5 077 6 789 8 500 10 211 11 922 13 633 15 344
R7 095 5 640 7 414 9 187 10 961 12 734 14 508 16 282
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.65 1.75 2.00 2.25
R9 216 -106 2 198 4 502 5 884 6 806 9 110 11 414
R9 466 144 2 510 4 877 6 297 7 243 9 610 11 977
R9 716 394 2 823 5 252 6 709 7 681 10 110 12 539
R9 966 644 3 135 5 627 7 122 8 118 10 610 13 102
R10 216 894 3 448 6 002 7 534 8 556 11 110 13 664
R10 466 1 144 3 760 6 377 7 947 8 993 11 610 14 227
R10 716 1 394 4 073 6 752 8 359 9 431 12 110 14 789
R10 966 1 644 4 385 7 127 8 772 9 868 12 610 15 352
R11 216 1 894 4 698 7 502 9 184 10 306 13 110 15 914
Canola margin above/below wheat
Yield Price (R/ton)
R9 466 R9 716 R9 966 R10 216 R10 466 R10 716 R10 966
0.50 -12 550 -12 425 -12 300 -12 175 -12 050 -11 925 -11 800
1.00 -7 817 -7 567 -7 317 -7 067 -6 817 -6 567 -6 317
1.25 -5 450 -5 138 -4 825 -4 513 -4 200 -3 888 -3 575
1.50 -3 084 -2 709 -2 334 -1 959 -1 584 -1 209 -834
1.65 -1 664 -1 251 -839 -426 -14 399 811
1.75 -717 -280 158 595 1 033 1 470 1 908
2.00 1 649 2 149 2 649 3 149 3 649 4 149 4 649
2.25 4 016 4 578 5 141 5 703 6 266 6 828 7 391
2.50 6 382 7 007 7 632 8 257 8 882 9 507 10 132

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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