2024/2025 ICB: Irrigation summer crops for North West (Brits)
2024/2025 SUMMER CROPS  //  Income and Cost Budgets

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 3.80 3.00 7.00
SAFEX simulated price / producer price: 2025 R/ton 3 798 7 520 8 180 5 324
Total deductions R/ton 282 129 327 69
– Transport differential R/ton 199 – 225 –
– Grade differential R/ton 14 – – –
– Handling and commission R/ton 69 69 102 69
– Seed breeding and technology levy R/ton – 60 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 3 517 7 391 7 754 5 255
Gross income R/ha R42 198 R28 084 R23 561 R36 783

2. Variable expenditures
Contracting R/ha 881 923 – –
Crop insurance R/ha 1 435 1 545 565 936
Fertilizer R/ha 9 263 3 056 2 741 5 611
Lime R/ha 679 – – 441
Seed R/ha 5 621 2 551 1 136 1 035
Fuel R/ha 1 726 1 477 1 463 1 548
Herbicide R/ha 1 142 989 842 1 169
Insecticide / Fungicides R/ha 876 897 496 590
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 978 860 1 168 860
Casual labour R/ha 575 – – 166
Aerial spray R/ha – – – 261
Irrigation electricity R/ha 4 961 4 059 2 255 3 157
Water R/ha 1 341 1 098 610 854
Other expenditure: scheduling/irrigation equipment R&M R/ha 1 128 944 575 759
Total variable expenditure R/ha R30 605 R18 398 R11 851 R17 387
Total variable expenditure R/ton R2 550 R4 841 R3 950 R2 484
3.1 Gross margin R/ha R11 593 R9 687 R11 710 R19 396
3.2 Gross margin R/ton R966 R2 549 R3 903 R2 771
Break-even yield T/ha 8.70 2.47 1.51 3.31
Break-even price R/ton R2 550 R4 841 R3 950 R2 484
Source: BFAP, GSA, NWK and individual farmers – 2024.
Gross margin comparison – baseline: North West (Brits)
Figure 3.3: Gross margin comparison – Baseline: North West (Brits region) irrigation

Gross margin per hectare: North West (Brits)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R3 117 2 118 3 677 5 235 6 793 8 351 9 910 11 468
R3 217 3 168 4 777 6 385 7 993 9 601 11 210 12 818
R3 317 4 218 5 877 7 535 9 193 10 851 12 510 14 168
R3 417 5 268 6 977 8 685 10 393 12 101 13 810 15 518
R3 517 6 318 8 077 9 835 11 593 13 351 15 110 16 868
R3 617 7 368 9 177 10 985 12 793 14 601 16 410 18 218
R3 717 8 418 10 277 12 135 13 993 15 851 17 710 19 568
R3 817 9 468 11 377 13 285 15 193 17 101 19 010 20 918
R3 917 10 518 12 477 14 435 16 393 18 351 20 310 22 268
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R6 991 2 574 4 322 6 069 8 167 9 565 11 312 13 060
R7 091 2 874 4 647 6 419 8 547 9 965 11 737 13 510
R7 191 3 174 4 972 6 769 8 927 10 365 12 162 13 960
R7 291 3 474 5 297 7 119 9 307 10 765 12 587 14 410
R7 391 3 774 5 622 7 469 9 687 11 165 13 012 14 860
R7 491 4 074 5 947 7 819 10 067 11 565 13 437 15 310
R7 591 4 374 6 272 8 169 10 447 11 965 13 862 15 760
R7 691 4 674 6 597 8 519 10 827 12 365 14 287 16 210
R7 791 4 974 6 922 8 869 11 207 12 765 14 712 16 660
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.30 2.55 2.80 3.00 3.30 3.55 3.80
R7 454 5 293 7 156 9 019 10 510 12 746 14 610 16 473
R7 554 5 523 7 411 9 299 10 810 13 076 14 965 16 853
R7 654 5 753 7 666 9 579 11 110 13 406 15 320 17 233
R7 754 5 983 7 921 9 859 11 410 13 736 15 675 17 613
R7 854 6 213 8 176 10 139 11 710 14 066 16 030 17 993
R7 954 6 443 8 431 10 419 12 010 14 396 16 385 18 373
R8 054 6 673 8 686 10 699 12 310 14 726 16 740 18 753
R8 154 6 903 8 941 10 979 12 610 15 056 17 095 19 133
R8 254 7 133 9 196 11 259 12 910 15 386 17 450 19 513
Soybeans margin above/below maize
Yield Price (R/ton)
R7 091 R7 191 R7 291 R7 391 R7 491 R7 591 R7 691
2.75 -10 492 -10 217 -9 942 -9 667 -9 392 -9 117 -8 842
3.00 -8 719 -8 419 -8 119 -7 819 -7 519 -7 219 -6 919
3.25 -6 946 -6 621 -6 296 -5 971 -5 646 -5 321 -4 996
3.50 -5 174 -4 824 -4 474 -4 124 -3 774 -3 424 -3 074
3.80 -3 047 -2 667 -2 287 -1 907 -1 527 -1 147 -767
4.00 -1 629 -1 229 -829 -429 -29 371 771
4.25 144 569 994 1 419 1 844 2 269 2 694
4.50 1 917 2 367 2 817 3 267 3 717 4 167 4 617
4.75 3 689 4 164 4 639 5 114 5 589 6 064 6 539

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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