2024/2025 ICB: Irrigation summer crops sy Loskop in Limpopo

2024/2025 SUMMER CROPS  //  Income and Cost Budgets

Limpopo (Loskop region) – irrigation

Income and cost budgets for maize and soybeans for Limpopo (Loskop)
Area Limpopo: Loskop
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2025 R/ton 3 798 7 520
Total deductions R/ton 439 129
– Transport differential R/ton 356
– Grade differential R/ton 14
– Handling and commission R/ton 69 69
– Seed breeding and technology levy R/ton 60
Price premiums R/ton
Net farm gate price R/ton 3 360 7 391
Gross income R/ha R40 314 R29 562

2. Variable expenditures

Contracting R/ha 881 923
Crop insurance R/ha 1 371 1 626
Fertilizer R/ha 9 263 3 327
Lime R/ha 863
Seed R/ha 5 621 2 551
Fuel R/ha 1 726 1 477
Herbicide R/ha 1 142 989
Insecticide / Fungicides R/ha 876 441
Marketing costs R/ha
Repairs and maintenance R/ha 1 031 1 057
Casual labour R/ha 575
Aerial spray R/ha
Irrigation electricity R/ha 5 953 4 284
Water R/ha 1 610 1 158
Other expenditure: scheduling/irrigation equipment R&M R/ha 1 331 990
Total variable expenditure R/ha R32 242 R18 823
Total variable expenditure R/ton R2 687 R4 706
3.1 Gross margin R/ha R8 073 R10 739
3.2 Gross margin R/ton R673 R2 685
Break-even yield T/ha 9.60 2.55
Break-even price R/ton R2 687 R4 706
Source: BFAP, GSA and individual farmers – 2024.
Gross margin comparison – baseline: Limpopo (Loskop region)
Figure 3.4: Gross margin comparison – Baseline: Limpopo (Loskop) irrigation

Gross margin per hectare: Limpopo (Loskop area)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R2 960 -1 166 313 1 793 3 273 4 753 6 233 7 712
R3 060 -116 1 413 2 943 4 473 6 003 7 533 9 062
R3 160 934 2 513 4 093 5 673 7 253 8 833 10 412
R3 260 1 984 3 613 5 243 6 873 8 503 10 133 11 762
R3 360 3 034 4 713 6 393 8 073 9 753 11 433 13 112
R3 460 4 084 5 813 7 543 9 273 11 003 12 733 14 462
R3 560 5 134 6 913 8 693 10 473 12 253 14 033 15 812
R3 660 6 184 8 013 9 843 11 673 13 503 15 333 17 162
R3 760 7 234 9 113 10 993 12 873 14 753 16 633 18 512
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R6 991 3 896 5 644 7 391 9 139 10 887 12 634 14 382
R7 091 4 221 5 994 7 766 9 539 11 312 13 084 14 857
R7 191 4 546 6 344 8 141 9 939 11 737 13 534 15 332
R7 291 4 871 6 694 8 516 10 339 12 162 13 984 15 807
R7 391 5 196 7 044 8 891 10 739 12 587 14 434 16 282
R7 491 5 521 7 394 9 266 11 139 13 012 14 884 16 757
R7 591 5 846 7 744 9 641 11 539 13 437 15 334 17 232
R7 691 6 171 8 094 10 016 11 939 13 862 15 784 17 707
R7 791 6 496 8 444 10 391 12 339 14 287 16 234 18 182
Soybeans margin above/below maize
Yield Price (R/ton)
R7 091 R7 191 R7 291 R7 391 R7 491 R7 591 R7 691
3.00 -5 624 -5 324 -5 024 -4 724 -4 424 -4 124 -3 824
3.25 -3 852 -3 527 -3 202 -2 877 -2 552 -2 227 -1 902
3.50 -2 079 -1 729 -1 379 -1 029 -679 -329 21
3.75 -307 68 443 818 1 193 1 568 1 943
4.00 1 466 1 866 2 266 2 666 3 066 3 466 3 866
4.25 3 239 3 664 4 089 4 514 4 939 5 364 5 789
4.50 5 011 5 461 5 911 6 361 6 811 7 261 7 711
4.75 6 784 7 259 7 734 8 209 8 684 9 159 9 634
5.00 8 557 9 057 9 557 10 057 10 557 11 057 11 557

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.
  • Other macro- and microelements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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