WINTER CROPS  //  2024 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Bredasdorp region)
Area Southern Cape: Bredasdorp
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 3.00 1.75 2.40 1.40
SAFEX simulated / derived price: 2024 R/ton 6 247 6 247 7 476 6 247 4 916
Total deductions R/ton 1 115 974 172 951 98
– Transport differential R/ton 817 817 827 98
– Grade differential R/ton 176 124
– Marketing, handling and statutory levies R/ton 123 33 172 124 100
Price premiums / Canola back-payment (10% of contracted price) R/ton 71 748
Net farm gate price R/ton 5 132 5 185 8 051 5 296 4 718
Gross income R/ha R15 397 R15 556 R14 090 R12 711 R6 605

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 44 45 40 36
Fertilizer R/ha 3 223 3 086 3 311 2 594 1 180
Lime R/ha 227 227 227 190 190
Seed R/ha 873 654 1 329 878 939
Fuel R/ha 716 732 710 701 637
Herbicide R/ha 1 482 919 921 729 869
Insecticide R/ha 188 135 590 131 157
Fungicides R/ha 858 975 678 607 408
Marketing costs R/ha 104 96 18
Repairs and maintenance R/ha 857 775 882 826 474
Casual labour R/ha 10 12 13 11 7
Aerial spray R/ha
Other expenditure R/ha 154 156 146 37 37
Total variable expenditure R/ha R8 737 R7 811 R8 864 R6 741 R4 897
Total variable expenditure R/ton R2 912 R2 604 R5 065 R2 809 R3 498
3.1 Gross margin R/ha R6 660 R7 745 R5 226 R5 971 R1 708
3.2 Gross margin R/ton R2 220 R2 582 R2 986 R2 488 R1 220
Break-even yield T/ha 1.70 1.51 1.10 1.27 1.04
Break-even price R/ton R2 912 R2 604 R5 065 R2 809 R3 498
Source: Overberg Agri, GSA and BFAP, updated April 2024.
Gross margin comparison – Baseline: Southern Cape (Bredasdorp region)
Graph showing gross margin comparison for Southern Cape (Bredasdorp region)

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R4 132 560 1 594 2 627 3 660 4 693 5 726 6 759
R4 382 1 123 2 219 3 314 4 410 5 505 6 601 7 696
R4 632 1 685 2 844 4 002 5 160 6 318 7 476 8 634
R4 882 2 248 3 469 4 698 5 910 7 130 8 351 9 571
R5 132 2 810 4 094 5 377 6 660 7 943 9 226 10 509
R5 382 3 373 4 719 6 064 7 410 8 755 10 101 11 446
R5 632 3 935 5 344 6 752 8 160 9 568 10 976 12 384
R5 882 4 498 5 969 7 439 8 910 10 380 11 851 13 321
R6 132 5 060 6 594 8 127 9 660 11 193 12 726 14 259
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R4 185 1 606 2 652 3 699 4 745 5 791 6 838 7 884
R4 435 2 168 3 277 4 386 5 495 6 604 7 713 8 822
R4 685 2 731 3 902 5 074 6 245 7 416 8 588 9 759
R4 935 3 293 4 527 5 761 6 995 8 229 9 463 10 697
R5 185 3 856 5 152 6 449 7 745 9 041 10 338 11 634
R5 435 4 418 5 777 7 136 8 495 9 854 11 213 12 572
R5 685 4 981 6 402 7 824 9 245 10 666 12 088 13 509
R5 935 5 543 7 027 8 511 9 995 11 479 12 963 14 447
R6 185 6 106 7 652 9 199 10 745 12 291 13 838 15 384
Barley sensitivity analysis
Yield (t/ha)
Producers price 1.15 1.40 1.65 1.75 1.90 2.15 2.40
R7 051 -755 1 008 2 771 3 476 4 534 6 297 8 060
R7 301 -467 1 358 3 184 3 914 5 009 6 834 8 660
R7 551 -180 1 708 3 596 4 351 5 484 7 372 9 260
R7 801 108 2 058 4 009 4 789 5 959 7 909 9 860
R8 051 395 2 408 4 421 5 226 6 434 8 447 10 460
R8 301 683 2 758 4 834 5 664 6 909 8 984 11 060
R8 551 970 3 108 5 246 6 101 7 384 9 522 11 660
R8 801 1 258 3 458 5 659 6 539 7 859 10 059 12 260
R9 051 1 545 3 808 6 071 6 976 8 334 10 597 12 860
Canola margin above/below wheat
Yield Price (R/ton)
R7 301 R7 551 R7 801 R8 051 R8 301 R8 551 R8 801
0.90 -8 952 -8 727 -8 502 -8 277 -8 052 -7 827 -7 602
1.15 -7 127 -6 839 -6 552 -6 264 -5 977 -5 689 -5 402
1.40 -5 301 -4 951 -4 601 -4 251 -3 901 -3 551 -3 201
1.65 -3 476 -3 063 -2 651 -2 238 -1 826 -1 413 -1 001
1.75 -2 746 -2 308 -1 871 -1 433 -996 -558 -121
1.90 -1 651 -1 176 -701 -226 249 724 1 199
2.15 175 712 1 250 1 787 2 325 2 862 3 400
2.40 2 000 2 600 3 200 3 800 4 400 5 000 5 600
2.65 3 825 4 488 5 150 5 813 6 475 7 138 7 800

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.
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