Southern Cape – dryland

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

Area		Southern Cape: Eastern Rûens (high potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	2.00	2.50	1.70
SAFEX simulated / derived price: 2023	R/ton	6 526	6 526	8 205	6 526	5 792
Total deductions	R/ton	1 037	995	27	865	134
– Transport differential	R/ton	750	750	–	832	99
– Grade differential	R/ton	186	172	–	–	–
– Marketing, handling and statutory levies	R/ton	100	73	27	33	35
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	67	821	–	–
Net farm gate price	R/ton	5 490	5 430	8 999	5 661	5 658
Gross income	R/ha	R16 469	R16 291	R17 998	R14 153	R9 619
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	47	47	52	41	–
Fertilizer	R/ha	3 480	3 415	4 096	3 003	1 508
Lime	R/ha	232	232	232	194	–
Seed	R/ha	751	601	1 352	795	1 055
Fuel	R/ha	799	816	802	785	724
Herbicide	R/ha	1 466	1 115	1 171	977	907
Insecticide	R/ha	385	251	573	172	187
Fungicides	R/ha	836	1 100	726	446	501
Marketing costs	R/ha	71	97	39	–	–
Repairs and maintenance	R/ha	812	812	862	812	812
Casual labour	R/ha	22	23	24	22	18
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R9 054	R8 666	R10 074	R7 285	R5 750
Total variable expenditure	R/ton	R3 018	R2 889	R5 037	R2 914	R3 382
3.1 Gross margin	R/ha	R7 415	R7 625	R7 924	R6 868	R3 869
3.2 Gross margin	R/ton	R2 472	R2 542	R3 962	R2 747	R2 276
Break-even yield	T/ha	1.65	1.60	1.12	1.29	1.02
Break-even price	R/ton	R3 018	R2 889	R5 037	R2 914	R3 382

Source: SSK, GSA and BFAP, updated April 2023.

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