Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – high potential regions)

Area		Southern Cape: Eastern Rûens (high potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	2.10	2.50	1.70
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	198
– 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	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	R16 908	R13 241	R8 020
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	44	45	49	38	–
Fertilizer	R/ha	3 020	2 971	3 582	2 630	1 381
Lime	R/ha	227	227	227	190	–
Seed	R/ha	790	615	1 445	985	1 114
Fuel	R/ha	716	732	719	705	649
Herbicide	R/ha	1 216	888	1 086	847	797
Insecticide	R/ha	189	165	609	140	178
Fungicides	R/ha	871	1 279	667	509	478
Marketing costs	R/ha	74	102	43	–	–
Repairs and maintenance	R/ha	739	739	798	739	400
Casual labour	R/ha	11	12	13	11	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R8 052	R7 932	R9 383	R6 831	R5 041
Total variable expenditure	R/ton	R2 684	R2 644	R4 468	R2 733	R2 966
3.1 Gross margin	R/ha	R7 345	R7 625	R7 525	R6 410	R2 979
3.2 Gross margin	R/ton	R2 448	R2 542	R3 583	R2 564	R1 752
Break-even yield	T/ha	1.57	1.53	1.17	1.29	1.07
Break-even price	R/ton	R2 684	R2 644	R4 468	R2 733	R2 966

Source: SSK, GSA and BFAP, updated April 2024.

Gross margin per hectare: Southern Cape – Eastern Rûens (high potential)

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.