WINTER CROPS  //  2024 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.90
SAFEX simulated / derived price: 2024 R/ton 6 247 7 476
Total deductions R/ton 1 100 28
– Transport differential R/ton 817
– Grade differential R/ton 176
– Marketing, handling and statutory levies R/ton 107 28
Price premiums / Canola back-payment R/ton 748
Net farm gate price R/ton 5 148 8 195
Gross income R/ha R16 987 R15 571

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 49 45
Fertilizer R/ha 4 160 3 836
Lime R/ha 227 227
Seed R/ha 1 270 1 445
Fuel R/ha 694 532
Herbicide R/ha 1 216 1 086
Insecticide R/ha 189 609
Fungicides R/ha 871 667
Marketing costs R/ha 72 22
Repairs and maintenance R/ha 875 756
Casual labour R/ha 11 13
Aerial spray R/ha
Other expenditure R/ha 101 90
Total variable expenditure R/ha R9 735 R9 327
Total variable expenditure R/ton R2 950 R4 909
3.1 Gross margin R/ha R7 251 R6 244
3.2 Gross margin R/ton R2 197 R3 286
Break-even yield T/ha 1.89 1.14
Break-even price R/ton R2 950 R4 909
Source: Kaap 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 – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R4 148 633 1 670 2 707 3 951 4 781 5 818 6 855
R4 398 1 258 2 358 3 457 4 776 5 656 6 755 7 855
R4 648 1 883 3 045 4 207 5 601 6 531 7 693 8 855
R4 898 2 508 3 733 4 957 6 426 7 406 8 630 9 855
R5 148 3 133 4 420 5 707 7 251 8 281 9 568 10 855
R5 398 3 758 5 108 6 457 8 076 9 156 10 505 11 855
R5 648 4 383 5 795 7 207 8 901 10 031 11 443 12 855
R5 898 5 008 6 483 7 957 9 726 10 906 12 380 13 855
R6 148 5 633 7 170 8 707 10 551 11 781 13 318 14 855
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.15 1.40 1.65 1.90 2.15 2.40 2.65
R7 195 -1 053 746 2 545 4 344 6 143 7 942 9 740
R7 445 -765 1 096 2 958 4 819 6 680 8 542 10 403
R7 695 -478 1 446 3 370 5 294 7 218 9 142 11 065
R7 945 -190 1 796 3 783 5 769 7 755 9 742 11 728
R8 195 97 2 146 4 195 6 244 8 293 10 342 12 390
R8 445 385 2 496 4 608 6 719 8 830 10 942 13 053
R8 695 672 2 846 5 020 7 194 9 368 11 542 13 715
R8 945 960 3 196 5 433 7 669 9 905 12 142 14 378
R9 195 1 247 3 546 5 845 8 144 10 443 12 742 15 040
Canola margin above/below wheat
Yield Price (R/ton)
R7 445 R7 695 R7 945 R8 195 R8 445 R8 695 R8 945
0.75 -10 995 -10 807 -10 620 -10 432 -10 245 -10 057 -9 870
1.15 -8 017 -7 729 -7 442 -7 154 -6 867 -6 579 -6 292
1.40 -6 155 -5 805 -5 455 -5 105 -4 755 -4 405 -4 055
1.65 -4 294 -3 881 -3 469 -3 056 -2 644 -2 231 -1 819
1.90 -2 433 -1 958 -1 483 -1 008 -533 -58 417
2.15 -571 -34 504 1 041 1 579 2 116 2 654
2.40 1 290 1 890 2 490 3 090 3 690 4 290 4 890
2.65 3 151 3 814 4 476 5 139 5 801 6 464 7 126
2.50 2 035 2 660 3 285 3 910 4 535 5 160 5 785

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 producers to allocate them individually.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
  • The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro- and micro nutrients.
  • 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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