WINTER CROPS  //  2023 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.90
SAFEX simulated / derived price: 2023 R/ton 6 526 8 205
Total deductions R/ton 1 040 27
– Transport differential R/ton 750
– 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 8 999
Gross income R/ha R18 105 R17 098

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 52 49
Fertilizer R/ha 4 804 4 413
Lime R/ha 232 232
Seed R/ha 956 1 352
Fuel R/ha 774 593
Herbicide R/ha 1 466 1 171
Insecticide R/ha 385 573
Fungicides R/ha 836 726
Marketing costs R/ha 68 21
Repairs and maintenance R/ha 875 756
Casual labour R/ha 22 24
Aerial spray R/ha
Other expenditure R/ha 105 93
Total variable expenditure R/ha R10 576 R10 003
Total variable expenditure R/ton R3 205 R5 265
3.1 Gross margin R/ha R7 529 R7 094
3.2 Gross margin R/ton R2 282 R3 734
Break-even yield T/ha 1.93 1.11
Break-even price R/ton R3 205 R5 265
Source: Kaap 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 – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R4 486 640 1 762 2 884 4 229 5 127 6 248 7 370
R4 736 1 265 2 449 3 634 5 054 6 002 7 186 8 370
R4 986 1 890 3 137 4 384 5 879 6 877 8 123 9 370
R5 236 2 515 3 824 5 134 6 704 7 752 9 061 10 370
R5 486 3 140 4 512 5 884 7 529 8 627 9 998 11 370
R5 736 3 765 5 199 6 634 8 354 9 502 10 936 12 370
R5 986 4 390 5 887 7 384 9 179 10 377 11 873 13 370
R6 236 5 015 6 574 8 134 10 004 11 252 12 811 14 370
R6 486 5 640 7 262 8 884 10 829 12 127 13 748 15 370
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.15 1.40 1.65 1.90 2.15 2.40 2.65
R7 999 -805 1 195 3 195 5 194 7 194 9 194 11 193
R8 249 -517 1 545 3 607 5 669 7 732 9 794 11 856
R8 499 -230 1 895 4 020 6 144 8 269 10 394 12 518
R8 749 58 2 245 4 432 6 619 8 807 10 994 13 181
R8 999 345 2 595 4 845 7 094 9 344 11 594 13 843
R9 249 633 2 945 5 257 7 569 9 882 12 194 14 506
R9 499 920 3 295 5 670 8 044 10 419 12 794 15 168
R9 749 1 208 3 645 6 082 8 519 10 957 13 394 15 831
R9 999 1 495 3 995 6 495 8 994 11 494 13 994 16 493
Canola margin above/below wheat
Yield Price (R/ton)
R8 249 R8 499 R8 749 R8 999 R9 249 R9 499 R9 749
0.75 -11 346 -11 159 -10 971 -10 784 -10 596 -10 409 -10 221
1.15 -8 047 -7 759 -7 472 -7 184 -6 897 -6 609 -6 322
1.40 -5 985 -5 635 -5 285 -4 935 -4 585 -4 235 -3 885
1.65 -3 922 -3 510 -3 097 -2 685 -2 272 -1 860 -1 447
1.90 -1 860 -1 385 -910 -435 40 515 990
2.15 202 740 1 277 1 815 2 352 2 890 3 427
2.40 2 264 2 864 3 464 4 064 4 664 5 264 5 864
2.65 4 326 4 989 5 651 6 314 6 976 7 639 8 301
2.50 3 089 3 714 4 339 4 964 5 589 6 214 6 839

Notes

  • Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
  • 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 producers to allocate them individually.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
  • The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
  • 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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