Eastern Free State – irrigation

Gross margin per hectare: Free State

Notes

• Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
• The canola back-payment assumes 10% of contracted price.
• 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.