OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2017/2018 Income and Cost Budgets

Eastern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower and dry beans for Eastern Free State
Crop Maize Soybeans Sunflower Dry beans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 5.50 2.00 1.75 1.50
SAFEX simulated price: 2018 / producer price R/ton 2 208 5 221 5 243 12 500
Total deductions R/ton 305 62 347 62
– Transport differential R/ton 245 – 254 –
– Grade differential R/ton – – – –
– Marketing and handling R/ton 60 62 93 62
Price premiums R/ton – – – –
Net farm gate price R/ton 1 903 5 159 4 896 12 438
Gross income R/ha R10 467 R10 318 R8 567 R18 657

2. Variable expenditures
Contracting R/ha – – – 750
Crop insurance R/ha 398 1 264 634 1 663
Fertilizer R/ha 2 768 1 252 1 618 1 950
Lime R/ha 425 – – 555
Seed R/ha 1 601 952 547 1 584
Fuel R/ha 813 587 635 651
Herbicide R/ha 715 640 379 864
Insecticide R/ha 161 740 26 1 336
Fungicides R/ha – – – –
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 783 511 531 531
Casual labour R/ha 231 – – 450
Aerial spray R/ha – – – –
Other expenditure R/ha – – – –
Total variable expenditure R/ha R7 895 R5 946 R4 370 R10 335
Total variable expenditure R/ton R1 436 R2 973 R2 497 R6 890
3.1 Gross margin R/ha R2 571 R4 372 R4 197 R8 322
3.2 Gross margin R/ton R468 R2 186 R2 398 R5 548
Source: BFAP, GSA and individual farmers – 2017.
Gross margin comparison – baseline: Eastern Free State
Gross margin comparison baseline: Eastern Free State

Gross margin per hectare: Eastern Free State

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.00 2.50 2.75 3.00
R4 250 429 1 491 2 554 2 554 4 679 5 741 6 804
R4 500 804 1 929 3 054 3 054 5 304 6 429 7 554
R4 750 1 179 2 366 3 554 3 554 5 929 7 116 8 304
R5 000 1 554 2 804 4 054 4 054 6 554 7 804 9 054
R5 159 1 792 3 082 4 372 4 372 6 951 8 241 9 531
R5 500 2 304 3 679 5 054 5 054 7 804 9 179 10 554
R6 000 3 054 4 554 6 054 6 054 9 054 10 554 12 054
R6 500 3 804 5 429 7 054 7 054 10 304 11 929 13 554
R7 000 4 554 6 304 8 054 8 054 11 554 13 304 15 054
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R4 000 -370 630 1 630 2 630 3 630 4 630 5 630
R4 250 -120 942 2 005 3 067 4 130 5 192 6 255
R4 500 130 1 255 2 380 3 505 4 630 5 755 6 880
R4 750 380 1 567 2 755 3 942 5 130 6 317 7 505
R4 896 525 1 749 2 973 4 197 5 421 6 645 7 869
R5 000 630 1 880 3 130 4 380 5 630 6 880 8 130
R5 250 880 2 192 3 505 4 817 6 130 7 442 8 755
R5 500 1 130 2 505 3 880 5 255 6 630 8 005 9 380
R5 750 1 380 2 817 4 255 5 692 7 130 8 567 10 005
Soybeans margin above/below maize
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 159 R5 500 R5 750 R6 000
1.25 -2 893 -2 580 -2 268 -2 069 -1 643 -1 330 -1 018
1.50 -1 768 -1 393 -1 018 -779 -268 107 482
1.75 -643 -205 232 510 1 107 1 545 1 982
2.00 482 982 1 482 1 800 2 482 2 982 3 482
2.00 482 982 1 482 1 800 2 482 2 982 3 482
2.75 3 875 4 545 5 232 5 669 6 607 7 295 7 982
3.00 4 982 5 732 6 482 6 959 7 982 8 732 9 482
3.25 6 107 6 920 7 732 8 249 9 357 10 170 10 982
3.50 7 232 8 107 8 982 9 539 10 732 11 607 12 482

Notes

  • 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 cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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