2024/2025 ICB: Dryland summer crops at Lichtenburg, North West
2024/2025 SUMMER CROPS  //  Income and Cost Budgets

North West (Lichtenburg) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Lichtenburg region
Area North West: Lichtenburg
Crop Maize Soybeans Sunflower Groundnuts
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price / producer price: 2025 R/ton 3 817 7 520 8 180 16 350
Total deductions R/ton 383 218 393 69
– Transport differential R/ton 287 89 291 –
– Grade differential R/ton 27 – – –
– 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 3 433 7 302 7 788 16 281
Gross income R/ha R14 591 R10 952 R13 239 R24 422

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 219 1 226 371 391
Fertilizer R/ha 2 939 1 181 1 547 1 606
Lime R/ha 408 – – 224
Seed R/ha 1 083 875 814 2 026
Fuel R/ha 1 363 1 089 1 107 2 095
Herbicide R/ha 921 1 141 1 023 1 399
Insecticide / Fungicides R/ha 626 897 455 1 123
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 1 041 852 973 978
Casual labour R/ha 204 – – 564
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 354
Total variable expenditure R/ha R8 804 R7 261 R6 290 R11 105
Total variable expenditure R/ton R2 072 R4 840 R3 700 R7 403
3.1 Gross margin R/ha R5 787 R3 692 R6 949 R13 317
3.2 Gross margin R/ton R1 362 R2 461 R4 088 R8 878
Break-even yield T/ha 2.56 0.99 0.81 0.68
Break-even price R/ton R2 072 R4 840 R3 700 R7 403
Source: BFAP, GSA, NWK and individual farmers – 2024.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Lichtenburg)

Maize sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.25 3.75 4.25 4.75 5.25 5.75
R3 033 -463 1 054 2 571 4 087 5 604 7 121 8 637
R3 133 -188 1 379 2 946 4 512 6 079 7 646 9 212
R3 233 87 1 704 3 321 4 937 6 554 8 171 9 787
R3 333 362 2 029 3 696 5 362 7 029 8 696 10 362
R3 433 637 2 354 4 071 5 787 7 504 9 221 10 937
R3 533 912 2 679 4 446 6 212 7 979 9 746 11 512
R3 633 1 187 3 004 4 821 6 637 8 454 10 271 12 087
R3 733 1 462 3 329 5 196 7 062 8 929 10 796 12 662
R3 833 1 737 3 654 5 571 7 487 9 404 11 321 13 237
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R6 902 -2 085 -359 1 366 3 092 4 817 6 542 8 268
R7 002 -2 010 -259 1 491 3 242 4 992 6 742 8 493
R7 102 -1 935 -159 1 616 3 392 5 167 6 942 8 718
R7 202 -1 860 -59 1 741 3 542 5 342 7 142 8 943
R7 302 -1 785 41 1 866 3 692 5 517 7 342 9 168
R7 402 -1 710 141 1 991 3 842 5 692 7 542 9 393
R7 502 -1 635 241 2 116 3 992 5 867 7 742 9 618
R7 602 -1 560 341 2 241 4 142 6 042 7 942 9 843
R7 702 -1 485 441 2 366 4 292 6 217 8 142 10 068
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R7 388 1 098 2 945 4 791 6 269 8 485 10 332 12 179
R7 488 1 198 3 070 4 941 6 439 8 685 10 557 12 429
R7 588 1 298 3 195 5 091 6 609 8 885 10 782 12 679
R7 688 1 398 3 320 5 241 6 779 9 085 11 007 12 929
R7 788 1 498 3 445 5 391 6 949 9 285 11 232 13 179
R7 888 1 598 3 570 5 541 7 119 9 485 11 457 13 429
R7 988 1 698 3 695 5 691 7 289 9 685 11 682 13 679
R8 088 1 798 3 820 5 841 7 459 9 885 11 907 13 929
R8 188 1 898 3 945 5 991 7 629 10 085 12 132 14 179
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R15 881 1 481 5 677 9 872 14 067 18 262 22 458 26 653
R15 981 1 556 5 777 9 997 14 217 18 437 22 658 26 878
R16 081 1 631 5 877 10 122 14 367 18 612 22 858 27 103
R16 181 1 706 5 977 10 247 14 517 18 787 23 058 27 328
R16 281 1 781 6 077 10 372 14 667 18 962 23 258 27 553
R16 381 1 856 6 177 10 497 14 817 19 137 23 458 27 778
R16 481 1 931 6 277 10 622 14 967 19 312 23 658 28 003
R16 581 2 006 6 377 10 747 15 117 19 487 23 858 28 228
R16 681 2 081 6 477 10 872 15 267 19 662 24 058 28 453
Soybeans margin above/below maize
Yield Price (R/ton)
R7 002 R7 102 R7 202 R7 302 R7 402 R7 502 R7 602
0.50 -9 547 -9 497 -9 447 -9 397 -9 347 -9 297 -9 247
0.75 -7 797 -7 722 -7 647 -7 572 -7 497 -7 422 -7 347
1.00 -6 046 -5 946 -5 846 -5 746 -5 646 -5 546 -5 446
1.25 -4 296 -4 171 -4 046 -3 921 -3 796 -3 671 -3 546
1.50 -2 546 -2 396 -2 246 -2 096 -1 946 -1 796 -1 646
1.75 -795 -620 -445 -270 -95 80 255
2.00 955 1 155 1 355 1 555 1 755 1 955 2 155
2.25 2 705 2 930 3 155 3 380 3 605 3 830 4 055
2.50 4 456 4 706 4 956 5 206 5 456 5 706 5 956

Notes

  • Farm gate price for groundnuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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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