WINTER CROPS  //  2024 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat, canola and lupins for Darling-vlakte – Hopefield (Sandveld region)
Area Darling-vlakte – Hopefield (Sandveld region)
Crop Wheat Canola Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.35 1.40 1.50
SAFEX simulated / derived price: 2024 R/ton 6 247 7 476 4 916
Total deductions R/ton 1 100 28 133
– Transport differential R/ton 817 98
– Grade differential R/ton 176
– Marketing, handling and statutory levies R/ton 107 28 35
Price premiums / Canola back-payment R/ton 748
Net farm gate price R/ton 5 148 8 195 4 783
Gross income R/ha R12 097 R11 473 R7 174

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 35 33
Fertilizer R/ha 3 188 2 983 987
Lime R/ha 159 159 227
Seed R/ha 1 097 1 445 704
Fuel R/ha 696 494 501
Herbicide R/ha 1 241 806 797
Insecticide R/ha 163 374 178
Fungicides R/ha 595 638 478
Marketing costs R/ha 51 16
Repairs and maintenance R/ha 800 680 700
Casual labour R/ha 10 12 7
Aerial spray R/ha
Other expenditure R/ha 101 90 90
Total variable expenditure R/ha R8 136 R7 730 R4 668
Total variable expenditure R/ton R3 462 R5 521 R3 112
3.1 Gross margin R/ha R3 961 R3 744 R2 506
3.2 Gross margin R/ton R1 686 R2 674 R1 671
Break-even yield T/ha 1.58 0.94 0.98
Break-even price R/ton R3 462 R5 521 R3 112
Source: Kaap Agri, Overberg Agri, GSA and BFAP, updated April 2024.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Darling-vlakte – Hopefield

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.35 2.50 2.75 3.00
R4 148 -1 914 -878 159 1 611 2 233 3 270 4 307
R4 398 -1 539 -440 659 2 198 2 858 3 957 5 057
R4 648 -1 164 -3 1 159 2 786 3 483 4 645 5 807
R4 898 -789 435 1 659 3 373 4 108 5 332 6 557
R5 148 -414 872 2 159 3 961 4 733 6 020 7 307
R5 398 -39 1 310 2 659 4 548 5 358 6 707 8 057
R5 648 336 1 747 3 159 5 136 5 983 7 395 8 807
R5 898 711 2 185 3 659 5 723 6 608 8 082 9 557
R6 148 1 086 2 622 4 159 6 311 7 233 8 770 10 307
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.70 0.95 1.20 1.40 1.70 1.95 2.20
R7 195 -2 693 -894 905 2 344 4 502 6 301 8 100
R7 445 -2 518 -657 1 205 2 694 4 927 6 788 8 650
R7 695 -2 343 -419 1 505 3 044 5 352 7 276 9 200
R7 945 -2 168 -182 1 805 3 394 5 777 7 763 9 750
R8 195 -1 993 56 2 105 3 744 6 202 8 251 10 300
R8 445 -1 818 293 2 405 4 094 6 627 8 738 10 850
R8 695 -1 643 531 2 705 4 444 7 052 9 226 11 400
R8 945 -1 468 768 3 005 4 794 7 477 9 713 11 950
R9 195 -1 293 1 006 3 305 5 144 7 902 10 201 12 500
Canola margin above/below wheat
Yield Price (R/ton)
R7 445 R7 695 R7 945 R8 195 R8 445 R8 695 R8 945
0.25 -9 829 -9 767 -9 704 -9 642 -9 579 -9 517 -9 454
0.70 -6 479 -6 304 -6 129 -5 954 -5 779 -5 604 -5 429
0.95 -4 618 -4 380 -4 143 -3 905 -3 668 -3 430 -3 193
1.20 -2 756 -2 456 -2 156 -1 856 -1 556 -1 256 -956
1.40 -1 267 -917 -567 -217 133 483 833
1.70 966 1 391 1 816 2 241 2 666 3 091 3 516
1.95 2 828 3 315 3 803 4 290 4 778 5 265 5 753
2.20 4 689 5 239 5 789 6 339 6 889 7 439 7 989
2.25 5 061 5 624 6 186 6 749 7 311 7 874 8 436

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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