2025 ICB: irrigation winter crops for Limpopo
WINTER CROPS  //  2025 Income and Cost Budgets

Limpopo – irrigation

Income and cost budgets for wheat and barley for Limpopo
Area Limpopo
Crop Wheat Barley
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 6.50 6.00
SAFEX simulated price / producer price: 2025 R/ton 6 327 6 327
Total deductions R/ton 335 277
– Transport differential R/ton – –
– Grade differential R/ton 228 200
– Marketing, handling and statutory levies R/ton 107 77
Price premiums / Canola back-payment R/ton – 74
Net farm gate price R/ton 5 992 6 124
Gross income R/ha R38 951 R36 745

2. Variable expenditures
Contracting R/ha 886 886
Crop insurance R/ha 2 181 2 058
Fertilizer R/ha 6 050 5 117
Lime R/ha 812 812
Seed R/ha 2 035 1 688
Fuel R/ha 1 634 1 621
Herbicide R/ha 327 327
Insecticide R/ha 1 150 448
Fungicides R/ha – –
Marketing costs R/ha 147 158
Repairs and maintenance R/ha 943 822
Casual labour R/ha – –
Irrigation: Water R/ha 1 810 1 542
Irrigation: Electricity R/ha 4 870 4 149
Aerial spray R/ha 333 333
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 1 222 1 058
Total variable expenditure R/ha R24 399 R21 018
Total variable expenditure R/ton R3 754 R3 503
3.1 Gross margin R/ha R14 552 R15 727
3.2 Gross margin R/ton R2 239 R2 621
Break-even yield T/ha 4.07 3.43
Break-even price R/ton R3 754 R3 503
Source: GSA, BFAP and Obaro, updated April 2025.
Gross margin comparison – Baseline: Limpopo
Graph showing baseline gross margin comparison for Limpopo irrigation

Gross margin per hectare: Limpopo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.75 6.00 6.25 6.50 6.75 7.00 7.25
R4 992 4 307 5 556 6 804 8 052 9 300 10 548 11 796
R5 242 5 745 7 056 8 366 9 677 10 987 12 298 13 609
R5 492 7 182 8 556 9 929 11 302 12 675 14 048 15 421
R5 742 8 620 10 056 11 491 12 927 14 362 15 798 17 234
R5 992 10 057 11 556 13 054 14 552 16 050 17 548 19 046
R6 242 11 495 13 056 14 616 16 177 17 737 19 298 20 859
R6 492 12 932 14 556 16 179 17 802 19 425 21 048 22 671
R6 742 14 370 16 056 17 741 19 427 21 112 22 798 24 484
R6 992 15 807 17 556 19 304 21 052 22 800 24 548 26 296
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R5 124 5 884 7 165 8 446 9 727 11 008 12 289 13 570
R5 374 7 197 8 540 9 884 11 227 12 571 13 914 15 258
R5 624 8 509 9 915 11 321 12 727 14 133 15 539 16 945
R5 874 9 822 11 290 12 759 14 227 15 696 17 164 18 633
R6 124 11 134 12 665 14 196 15 727 17 258 18 789 20 320
R6 374 12 447 14 040 15 634 17 227 18 821 20 414 22 008
R6 624 13 759 15 415 17 071 18 727 20 383 22 039 23 695
R6 874 15 072 16 790 18 509 20 227 21 946 23 664 25 383
R7 124 16 384 18 165 19 946 21 727 23 508 25 289 27 070

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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