2023/2024 ICB: Dryland soybean and maize in KwaZulu-Natal
2023/2024 SUMMER CROPS  //  Income and Cost Budgets

KwaZulu-Natal – dryland

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bloedrivier region)
KwaZulu-Natal: Bloedrivier
Crop Maize Soybeans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 7.00 2.65
SAFEX simulated price / producer price: 2024 R/ton 3 766 8 109
Total deductions R/ton 522 447
– Transport differential R/ton 441 328
– Grade differential R/ton 18 –
– Handling and commission R/ton 63 62
– Seed breeding and technology levy R/ton – 58
Price premiums R/ton – –
Net farm gate price R/ton 3 244 7 662
Gross income R/ha R22 708 R20 304

2. Variable expenditures
Contracting R/ha – –
Crop insurance R/ha 863 2 477
Fertilizer R/ha 5 538 2 532
Lime R/ha 735 –
Seed R/ha 3 709 1 760
Fuel R/ha 1 479 897
Herbicide R/ha 1 578 1 476
Insecticide / Fungicides R/ha 931 407
Marketing costs R/ha – –
Repairs and maintenance R/ha 734 466
Casual labour R/ha 339 –
Aerial spray R/ha – –
Other expenditure R/ha – –
Total variable expenditure R/ha R15 906 R10 016
Total variable expenditure R/ton R2 272 R3 780
3.1 Gross margin R/ha R6 802 R10 287
3.2 Gross margin R/ton R972 R3 882
Break-even yield T/ha 4.90 1.31
Break-even price R/ton R2 272 R3 780
Source: BFAP, GSA and individual farmers – 2023
Gross margin comparison – baseline: KwaZulu-Natal (Bloedrivier region)
Gross margin comparison - Baseline: KwaZulu-Natal (Bloedrivier Region)

Gross margin per hectare: KwaZulu-Natal (Bloedrivier)

Maize sensitivity analysis
Yield (t/ha)
Producers price 5.50 6.00 6.50 7.00 7.50 8.00 8.50
R2 844 -264 1 158 2 580 4 002 5 424 6 846 8 268
R2 944 286 1 758 3 230 4 702 6 174 7 646 9 118
R3 044 836 2 358 3 880 5 402 6 924 8 446 9 968
R3 144 1 386 2 958 4 530 6 102 7 674 9 246 10 818
R3 244 1 936 3 558 5 180 6 802 8 424 10 046 11 668
R3 344 2 486 4 158 5 830 7 502 9 174 10 846 12 518
R3 444 3 036 4 758 6 480 8 202 9 924 11 646 13 368
R3 544 3 586 5 358 7 130 8 902 10 674 12 446 14 218
R3 644 4 136 5 958 7 780 9 602 11 424 13 246 15 068
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.80 2.05 2.30 2.65 3.00 3.25 3.50
R7 262 3 055 4 870 6 686 9 227 11 769 13 585 15 400
R7 362 3 235 5 075 6 916 9 492 12 069 13 910 15 750
R7 462 3 415 5 280 7 146 9 757 12 369 14 235 16 100
R7 562 3 595 5 485 7 376 10 022 12 669 14 560 16 450
R7 662 3 775 5 690 7 606 10 287 12 969 14 885 16 800
R7 762 3 955 5 895 7 836 10 552 13 269 15 210 17 150
R7 862 4 135 6 100 8 066 10 817 13 569 15 535 17 500
R7 962 4 315 6 305 8 296 11 082 13 869 15 860 17 850
R8 062 4 495 6 510 8 526 11 347 14 169 16 185 18 200
Soybeans margin above/below maize
Yield Price (R/ton)
R7 362 R7 462 R7 562 R7 662 R7 762 R7 862 R7 962
1.65 -4 671 -4 506 -4 341 -4 176 -4 011 -3 846 -3 681
1.90 -2 831 -2 641 -2 451 -2 261 -2 071 -1 881 -1 691
2.15 -990 -775 -560 -345 -130 85 300
2.40 850 1 090 1 330 1 570 1 810 2 050 2 290
2.65 2 690 2 955 3 220 3 485 3 750 4 015 4 280
2.90 4 531 4 821 5 111 5 401 5 691 5 981 6 271
3.15 6 371 6 686 7 001 7 316 7 631 7 946 8 261
3.40 8 212 8 552 8 892 9 232 9 572 9 912 10 252
3.65 10 052 10 417 10 782 11 147 11 512 11 877 12 242

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.
  • Other macro- and microelements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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