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: 2025	R/ton	6 327	6 327	7 637	6 327	5 440
Total deductions	R/ton	1 090	1 119	29	924	194
– Transport differential	R/ton	800	800	–	800	94
– Grade differential	R/ton	168	286	–	–	–
– Marketing, handling and statutory levies	R/ton	123	33	29	124	100
Price premiums / Canola back-payment	R/ton	–	74	764	–	–
Net farm gate price	R/ton	5 237	5 387	8 371	5 403	5 246
Gross income	R/ha	R11 522	R11 852	R13 813	R8 105	R7 344
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	33	34	40	23	–
Fertilizer	R/ha	2 294	2 187	2 793	1 860	993
Lime	R/ha	262	262	262	220	–
Seed	R/ha	605	566	1 551	1 151	958
Fuel	R/ha	717	734	737	696	667
Herbicide	R/ha	1 467	724	872	647	1 024
Insecticide	R/ha	169	53	389	122	152
Fungicides	R/ha	562	656	521	251	521
Marketing costs	R/ha	57	78	35	–	–
Repairs and maintenance	R/ha	812	724	824	604	317
Casual labour	R/ha	13	14	15	9	5
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	36	165	153	123	123
Total variable expenditure	R/ha	R7 027	R6 197	R8 190	R5 708	R4 761
Total variable expenditure	R/ton	R3 194	R2 817	R4 964	R3 805	R3 400
3.1 Gross margin	R/ha	R4 495	R5 655	R5 622	R2 398	R2 584
3.2 Gross margin	R/ton	R2 043	R2 571	R3 407	R1 598	R1 845
Break-even yield	T/ha	1.34	1.15	0.98	1.06	0.91
Break-even price	R/ton	R3 194	R2 817	R4 964	R3 805	R3 400

Source: SSK, GSA and BFAP, updated April 2025.

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.