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: 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	R12 077	R11 947	R13 498	R8 492	R7 921
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	35	34	39	24	–
Fertilizer	R/ha	2 722	2 587	3 301	2 198	1 118
Lime	R/ha	232	232	232	194	–
Seed	R/ha	643	500	1 244	723	904
Fuel	R/ha	763	781	784	741	710
Herbicide	R/ha	1 212	935	994	938	806
Insecticide	R/ha	364	97	286	155	156
Fungicides	R/ha	557	948	630	187	381
Marketing costs	R/ha	52	71	29	–	–
Repairs and maintenance	R/ha	711	678	729	678	678
Casual labour	R/ha	16	14	16	14	12
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R7 460	R7 033	R8 431	R5 889	R4 803
Total variable expenditure	R/ton	R3 391	R3 197	R5 621	R3 926	R3 431
3.1 Gross margin	R/ha	R4 617	R4 914	R5 067	R2 603	R3 118
3.2 Gross margin	R/ton	R2 099	R2 234	R3 378	R1 735	R2 227
Break-even yield	T/ha	1.36	1.30	0.94	1.04	0.85
Break-even price	R/ton	R3 391	R3 197	R5 621	R3 926	R3 431

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

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.