WINTER CROPS  //  2023 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Rooi Karoo
Area Rooi Karoo
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.15 1.25
SAFEX simulated / derived price: 2023 R/ton 6 526 8 205
Total deductions R/ton 1 040 80
– Transport differential R/ton 750 53
– Grade differential R/ton 186
– Marketing, handling and statutory levies R/ton 104 27
Price premiums / Canola back-payment (10% of contracted price) R/ton 821
Net farm gate price R/ton 5 486 8 946
Gross income R/ha R11 796 R11 182

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 34 32
Fertilizer R/ha 2 832 2 724
Lime R/ha 174 174
Seed R/ha 783 1 352
Fuel R/ha 735 594
Herbicide R/ha 1 212 994
Insecticide R/ha 364 286
Fungicides R/ha 557 630
Marketing costs R/ha 44 14
Repairs and maintenance R/ha 795 795
Casual labour R/ha 20 22
Aerial spray R/ha
Other expenditure R/ha 105 93
Total variable expenditure R/ha R7 654 R7 711
Total variable expenditure R/ton R3 560 R6 169
3.1 Gross margin R/ha R4 142 R3 471
3.2 Gross margin R/ton R1 927 R2 777
Break-even yield T/ha 1.40 0.86
Break-even price R/ton R3 560 R6 169
Source: Kaap Agri, Overberg Agri, GSA and BFAP, updated April 2023.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Rooi Karoo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.15 2.25 2.50 2.75
R4 486 -924 198 1 319 1 992 2 441 3 562 4 684
R4 736 -549 635 1 819 2 530 3 003 4 187 5 372
R4 986 -174 1 073 2 319 3 067 3 566 4 812 6 059
R5 236 201 1 510 2 819 3 605 4 128 5 437 6 747
R5 486 576 1 948 3 319 4 142 4 691 6 062 7 434
R5 736 951 2 385 3 819 4 680 5 253 6 687 8 122
R5 986 1 326 2 823 4 319 5 217 5 816 7 312 8 809
R6 236 1 701 3 260 4 819 5 755 6 378 7 937 9 497
R6 486 2 076 3 698 5 319 6 292 6 941 8 941 10 184
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.65 0.90 1.15 1.25 1.40 1.65 1.90
R7 946 -2 547 -560 1 426 2 221 3 413 5 399 7 385
R8 196 -2 384 -335 1 714 2 533 3 763 5 812 7 860
R8 446 -2 222 -110 2 001 2 846 4 113 6 224 8 335
R8 696 -2 059 115 2 289 3 158 4 463 6 637 8 810
R8 946 -1 897 340 2 576 3 471 4 813 7 049 9 285
R9 196 -1 734 565 2 864 3 783 5 163 7 462 9 760
R9 446 -1 572 790 3 151 4 096 5 513 7 874 10 235
R9 696 -1 409 1 015 3 439 4 408 5 863 8 287 10 710
R9 946 -1 247 1 240 3 726 4 721 6 213 8 699 11 185
Canola margin above/below wheat
Yield Price (R/ton)
R8 196 R8 446 R8 696 R8 946 R9 196 R9 446 R9 696
0.25 -9 805 -9 742 -9 680 -9 617 -9 555 -9 492 -9 430
0.65 -6 526 -6 364 -6 201 -6 039 -5 876 -5 714 -5 551
0.90 -4 477 -4 252 -4 027 -3 802 -3 577 -3 352 -3 127
1.15 -2 428 -2 141 -1 853 -1 566 -1 278 -991 -703
1.25 -1 609 -1 296 -984 -671 -359 -46 266
1.40 -380 -30 320 670 1 020 1 370 1 720
1.65 1 669 2 082 2 494 2 907 3 319 3 732 4 144
1.90 3 718 4 193 4 668 5 143 5 618 6 093 6 568
2.00 4 538 5 038 5 538 6 038 6 538 7 038 7 538

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.
  • 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.
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