Southern Cape – dryland

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

Area		Southern Cape: Eastern Rûens (low potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.20	2.20	1.65	1.50	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	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	R11 291	R11 408	R13 285	R7 945	R6 605
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	32	33	38	23	–
Fertilizer	R/ha	2 364	2 252	2 880	1 915	1 010
Lime	R/ha	227	227	227	190	–
Seed	R/ha	677	512	1 329	895	955
Fuel	R/ha	685	700	703	665	637
Herbicide	R/ha	1 241	593	806	738	806
Insecticide	R/ha	163	47	374	131	148
Fungicides	R/ha	595	1 164	638	250	381
Marketing costs	R/ha	55	75	34	–	–
Repairs and maintenance	R/ha	612	585	662	585	363
Casual labour	R/ha	8	7	9	7	5
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R6 812	R6 352	R7 845	R5 436	R4 343
Total variable expenditure	R/ton	R3 097	R2 887	R4 755	R3 624	R3 102
3.1 Gross margin	R/ha	R4 479	R5 056	R5 439	R2 509	R2 262
3.2 Gross margin	R/ton	R2 036	R2 298	R3 297	R1 673	R1 616
Break-even yield	T/ha	1.33	1.22	0.97	1.03	0.92
Break-even price	R/ton	R3 097	R2 887	R4 755	R3 624	R3 102

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

Gross margin per hectare: Southern Cape – Eastern Rûens (low 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.