Southern Cape – dryland

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

Area		Southern Cape: Eastern Rûens (normal potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.50	2.50	1.65	2.20	1.50
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	R13 724	R13 576	R14 848	R12 545	R8 487
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	39	39	43	36	–
Fertilizer	R/ha	2 886	2 728	3 838	2 304	1 277
Lime	R/ha	232	232	232	194	–
Seed	R/ha	643	413	1 244	723	904
Fuel	R/ha	777	794	791	772	715
Herbicide	R/ha	1 427	1 090	1 151	950	890
Insecticide	R/ha	383	214	545	161	165
Fungicides	R/ha	821	1 059	679	415	412
Marketing costs	R/ha	59	81	32	–	–
Repairs and maintenance	R/ha	761	745	796	745	745
Casual labour	R/ha	20	20	22	20	18
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R8 202	R7 570	R9 519	R6 356	R5 164
Total variable expenditure	R/ton	R3 281	R3 028	R5 769	R2 889	R3 442
3.1 Gross margin	R/ha	R5 522	R6 006	R5 329	R6 098	R3 323
3.2 Gross margin	R/ton	R2 209	R2 402	R3 230	R2 772	R2 216
Break-even yield	T/ha	1.49	1.39	1.06	1.12	0.91
Break-even price	R/ton	R3 281	R3 028	R5 769	R2 889	R3 442

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

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