Western Cape – dryland

Income and cost budgets for wheat, canola and lupins for Darling-vlakte – Hopefield (Sandveld region)

Area		Darling-vlakte – Hopefield (Sandveld region)
Crop		Wheat	Canola	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.35	1.40	1.80
SAFEX simulated / derived price: 2023	R/ton	6 526	8 205	5 792
Total deductions	R/ton	1 040	27	134
– Transport differential	R/ton	750	–	99
– Grade differential	R/ton	186	–	–
– Marketing, handling and statutory levies	R/ton	104	27	35
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	821	–
Net farm gate price	R/ton	5 486	8 999	5 658
Gross income	R/ha	R12 893	R12 598	R10 184
2. Variable expenditures
Contracting	R/ha	–	–	–
Crop insurance	R/ha	37	36	–
Fertilizer	R/ha	3 661	3 411	1 049
Lime	R/ha	162	162	232
Seed	R/ha	826	1 352	667
Fuel	R/ha	776	551	558
Herbicide	R/ha	1 212	994	907
Insecticide	R/ha	364	286	187
Fungicides	R/ha	557	630	501
Marketing costs	R/ha	48	15	–
Repairs and maintenance	R/ha	800	680	700
Casual labour	R/ha	20	22	18
Aerial spray	R/ha	–	–	–
Other expenditure	R/ha	105	93	93
Total variable expenditure	R/ha	R8 568	R8 234	R4 913
Total variable expenditure	R/ton	R3 646	R5 881	R2 729
3.1 Gross margin	R/ha	R4 325	R4 365	R5 272
3.2 Gross margin	R/ton	R1 840	R3 118	R2 929
Break-even yield	T/ha	1.56	0.91	0.87
Break-even price	R/ton	R3 646	R5 881	R2 729

Source: Kaap Agri, Overberg Agri, GSA and BFAP, updated April 2023.

Gross margin per hectare: Western Cape – Darling-vlakte – Hopefield

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.