WINTER CROPS  //  2024 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – normal potential regions)
Area Southern Cape: Eastern Rûens (normal potential)
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.50 2.50 1.75 2.20 1.50
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 R12 831 R12 964 R14 090 R11 652 R7 077

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 37 37 40 33
Fertilizer R/ha 2 506 2 371 3 368 2 004 1 161
Lime R/ha 227 227 227 190
Seed R/ha 677 405 1 329 895 955
Fuel R/ha 697 712 709 692 641
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 62 85 36
Repairs and maintenance R/ha 675 662 730 662 382
Casual labour R/ha 10 10 12 10 7
Aerial spray R/ha
Other expenditure R/ha 154 156 146 37 37
Total variable expenditure R/ha R7 572 R6 696 R8 786 R5 992 R4 617
Total variable expenditure R/ton R3 029 R2 678 R5 021 R2 723 R3 078
3.1 Gross margin R/ha R5 258 R6 268 R5 304 R5 660 R2 460
3.2 Gross margin R/ton R2 103 R2 507 R3 031 R2 573 R1 640
Break-even yield T/ha 1.48 1.29 1.09 1.13 0.98
Break-even price R/ton R3 029 R2 678 R5 021 R2 723 R3 078
Source: SSK, GSA and BFAP, updated April 2024.
Gross margin comparison – Baseline: Southern Cape (Eastern Rûens – normal potential)
Gross margin comparison – Baseline: Southern Cape (Eastern Ruens - normal potential region)

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

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 132 -341 692 1 725 2 758 3 792 4 825 5 858
R4 382 97 1 192 2 288 3 383 4 479 5 575 6 670
R4 632 534 1 692 2 850 4 008 5 167 6 325 7 483
R4 882 972 2 192 3 413 4 633 5 854 7 075 8 295
R5 132 1 409 2 692 3 975 5 258 6 542 7 825 9 108
R5 382 1 847 3 192 4 538 5 883 7 229 8 575 9 920
R5 632 2 284 3 692 5 100 6 508 7 917 9 325 10 733
R5 882 2 722 4 192 5 663 7 133 8 604 10 075 11 545
R6 132 3 159 4 692 6 225 7 758 9 292 10 825 12 358
Barley sensitivity analysis
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 185 629 1 675 2 722 3 768 4 814 5 861 6 907
R4 435 1 066 2 175 3 284 4 393 5 502 6 611 7 720
R4 685 1 504 2 675 3 847 5 018 6 189 7 361 8 532
R4 935 1 941 3 175 4 409 5 643 6 877 8 111 9 345
R5 185 2 379 3 675 4 972 6 268 7 564 8 861 10 157
R5 435 2 816 4 175 5 534 6 893 8 252 9 611 10 970
R5 685 3 254 4 675 6 097 7 518 8 939 10 361 11 782
R5 935 3 691 5 175 6 659 8 143 9 627 11 111 12 595
R6 185 4 129 5 675 7 222 8 768 10 314 11 861 13 407
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R7 051 -1 735 28 1 791 3 554 5 317 7 079 8 842
R7 301 -1 485 341 2 166 3 991 5 817 7 642 9 467
R7 551 -1 235 653 2 541 4 429 6 317 8 204 10 092
R7 801 -985 966 2 916 4 866 6 817 8 767 10 717
R8 051 -735 1 278 3 291 5 304 7 317 9 329 11 342
R8 301 -485 1 591 3 666 5 741 7 817 9 892 11 967
R8 551 -235 1 903 4 041 6 179 8 317 10 545 12 592
R8 801 15 2 216 4 416 6 616 8 817 11 017 13 217
R9 051 265 2 528 4 791 7 054 9 317 11 579 13 842
Canola margin above/below wheat
Yield Price (R/ton)
R7 301 R7 551 R7 801 R8 051 R8 301 R8 551 R8 801
0.75 -8 569 -8 381 -8 194 -8 006 -7 819 -7 631 -7 444
1.00 -6 743 -6 493 -6 243 -5 993 -5 743 -5 493 -5 243
1.25 -4 918 -4 605 -4 293 -3 980 -3 668 -3 355 -3 043
1.50 -3 093 -2 718 -2 343 -1 968 -1 593 -1 218 -843
1.75 -1 267 -830 -392 45 483 920 1 358
2.00 558 1 058 1 558 2 058 2 558 3 058 3 558
2.25 2 383 2 946 3 508 4 071 4 633 5 196 5 758
2.50 4 209 4 834 5 459 6 084 6 709 7 334 7 959
2.75 6 034 6 722 7 409 8 097 8 784 9 472 10 159

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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