General user info

Study area

Regions within the Winter Rainfall Areas are included in the study area. The following regions are included in the Winter Rainfall Study Area:

  • Central Irrigation Region

    Barkley West
  • KwaZulu-Natal (Dry land)

  • KwaZulu-Natal (Irrigation)

  • Mpumalanga (Dry land)

  • Mpumalanga (Irrigation)

    Loskop Irrigation Scheme
  • North West Province (Dry land)

  • Free State (Dry land)



Income and cost estimates, or gross margins, are defined as follows: Gross production value less directly allocated variable costs. For crops it is expressed on a per hectare basis. The estimates are very useful, as they are considered to be an important management and planning tool, and are also used in extension services. The estimates may also be used in the PRF's strategic planning.

Although gross margin is a simple concept, it needs to be calculated accurately by making use of relevant and applicable data. Agricultural economy is not an exact science and therefore demands any amount of input and analysis to ensure representative, reliable and sustainable assumptions to calculate gross margins for the intended application.

It is very important to determine the relative profitability of the particular crop and competitive crops to serve, inter alia, as a planning instrument for producers. In preparing a proper planning instrument, it is important to indicate attainable norms in terms of yield and input to provide realistic producer targets. Targets should be higher than the average for a region.

The PRF currently enjoys the co-operation of agri businesses within the summer and winter rainfall areas. MGK, NWK, GWK and VKB in the summer rainfall area, as well as Overberg Agri, SSK and KaapAgri in the winter rainfall area prepare annual income and cost budgets for a range of crops produced within the areas they serve. The objective of the budgets is to serve as a planning instrument and to serve as a tool for credit considerations. For the purposes of this study, Agri businesses in the summer rainfall areas submit crop income and cost estimates annually, usually around August of each year. Producers in the winter rainfall areas usually submit the same around February each year. The PRF analyses the information. Information obtained is adjusted where necessary, to present it in a format that allows an equal comparative basis. Preparation of comparative income and cost estimates in a standard format requires obtaining comprehensive information from agri businesses. The information obtained is presented in a summarised format, without disclosing the comprehensive information obtained. Final analyses are made available to participating agri businesses for comment, before submitting the information to the PRF for publication and distribution. A committee, comprising various experts, provides regular input in terms of comparable yield targets for certain crops, to determine gross margins for various regions. The PRF aims to reflect a typical medium- to long-term situation. As such, seasonal variations are not taken into consideration for the analyses.

All income and cost estimates are based on budgets reflecting realistic input/output ratios, as well as good and recommended practices. Agri businesses assist fully in this regard.

Agri businesses in certain summer rainfall areas do not offer agri-economic services. In those areas the PRF obtains the required information during group discussions. A small group of farmers are invited to provide the information. Information obtained is analysed to prepare the income and cost estimates. The information is adjusted annually, based on the latest prices, or by using market indices. Every effort is made to repeat the group discussions every three to four years, because of possible structural changes within the industry.

In the process, respective areas are divided into more or less homogenous farming areas, to allow presentation of gross margins per region.

Sources of information according to region are presented in Table 1.

Table 1
Sources of information according to region, summer rainfall study area
Region Source
Central Irrigation Region GWK Corporative Limited
Karkloof and Vryheid Group discussions
Bergville Group discussions
Loskop Irrigation Scheme MGK Group
Kinross and Middleburg Group discussions
Koster, Lichtenburg, Mareetsane NWK Limited
Reitz and Frankfort VKB Landbou Limited

The PRF hereby acknowledges with thanks the cooperation of agri businesses listed in Table 1.

Cultivation costs include fuel and maintenance for tractors and implements. Norms according to the "Mechanisation Guide", an annual publication compiled and updated by JP le Roux, a private consultant, are applied for group discussion budgets. Agribusinesses maintain and update their own norms regarding mechanization costs.

Soybean, wheat, maize and sunflower prices are derived from SAFEX-future prices. All prices used are applicable at the time of compiling or updating the budgets. Future SAFEX prices during expected harvesting periods are applied. Estimated contracted prices for groundnuts are obtained from buyers and suppliers.

PRF presents a summarized budget for the alternative enterprises and they can be approached for more detailed information regarding the type, quantity and prices of inputs used in the budgets. PRF, however, undertook in some instances not to release any detail information as provided by agri businesses. PRF will approach these agri businesses if requests are received in this connection.


Die studiegebied waarbinne inkomste en kosteramings gedoen is behels die volgende:

  • Sentrale Besproeiingstreke

  • KwaZulu-Natal (Droëland)

  • KwaZulu-Natal (Besproeiing)

  • Mpumalanga (Droëland)

  • Mpumalanga (Besproeiing)

    Loskop Besproeiingskema
  • Noordwes Provinsie (Droëland)

  • Vrystaat (Droëland)



Inligting om inkomste/koste ramings op te stel word verkry vanaf agri-besighede. Die PNS mag egter die formaat van die begrotings aanpas sodat dit op 'n vergelykbare basis aangebied word. Indien die inligting nie beskikbaar is nie word groepbesprekings met produsente gehou. Aangesien struktuurveranderings binne die bedryf plaasvind word die besprekings min-of-meer driejaarliks herhaal. Gedurende die tussentydse periode word koste/inkomste ramings met die nuutste pryse of prysindekse aangepas.

Begrotings is gebaseer op tipiese en/of aanbevole praktyke wat in die betrokke gebied gevolg word of is gebaseer op studiegroepinligting wat aangepas word om 'n tipiese situasie te reflekteer. Die inligtingsbron word per voetnota aangedui onder die begroting. Wanneer gebruik gemaak is van aanbevole praktyke as uitgangspunt word die koste van sekere insette en die hoeveelhede toegedien afgelei vanaf aanbevelings van tegniese beamptes en inligting verkry vanaf studiegroepe.

Bronne van inligting word in Tabel 1 opgesom.

Tabel 1
Bronne van inligting, somerreënval studiegebied
Streek Bron
Sentrale Besproeiingstreke GWK Korporatief Beperk
Karkloof en Vryheid Groepsbesprekings
Bergville Groepsbesprekings
Loskop Besproeiingskema MGK Group
Kinross en Middleburg Groepsbesprekings
Koster, Lichtenburg, Mareetsane NWK Beperk
Reitz en Frankfort VKB Landbou Beperk

Die PNS verleen met dank erkenning aan die agri-besighede soos gelys in Tabel 1 vir hul samewerking.

Bewerkingskoste sluit brandstof en onderhoud in t.o.v. trekkrag en implemente. Norme volgens die "Meganisasiegids", 'n jaarlikse publikasie wat deur JP le Roux, 'n privaat konsultant, opgestel word, word vir groepbesprekings begrotings aangewend. Agri-besighede gebruik hul eie norme vir die doel.

Sojabone-, koring-, mielie- en sonneblompryse word verkry vanaf SAFEX genoteerde termynkontrakte. Alle pryse word geraam tydens die opstel van die begrotings. Toekomstige SAFEX termynkontrakpryse soos genoteer tydens verwagte oesperiode word gebruik vir begrotingsdoeleindes. Geraamde kontrakpryse vir grondbone word in samewerking met aankopers en verskaffers gedoen.

PNS bied die resultate in 'n opsommende formaat aan en kan genader word vir meer gedetailleerde inligting soos byvoorbeeld die soort, hoeveelheid en pryse van insette wat gebruik is in die begroting. In gevalle waar die PNS 'n onderneming gegee het om nie detailinligting beskikbaar te stel nie sal die betrokke Agribesighede genader word met sodanige versoek.

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