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

North West (Lichtenburg) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Lichtenburg region
Area North West: Lichtenburg
Crop Maize Soybeans Sunflower Groundnuts
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price: 2018 / producer price R/ton 2 045 5 221 5 243 10 140
Total deductions R/ton 249 60 289 63
– Transport differential R/ton 186 – 196 –
– Grade differential R/ton – – – –
– Marketing and handling R/ton 63 60 93 63
Price premiums R/ton – – – –
Net farm gate price R/ton 1 796 5 161 4 954 10 077
Gross income R/ha R7 633 R7 741 R8 421 R16 466

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 191 852 379 412
Fertilizer R/ha 1 944 1 115 1 196 1 531
Lime R/ha 425 – – 335
Seed R/ha 873 571 468 1 465
Fuel R/ha 799 738 731 683
Herbicide R/ha 987 584 251 751
Insecticide R/ha 344 221 21 530
Fungicides R/ha – – – –
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 675 594 622 696
Casual labour R/ha 208 – 133 1 807
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 500
Total variable expenditure R/ha R6 446 R4 675 R3 801 R8 710
Total variable expenditure R/ton R1 517 R3 117 R2 236 R5 806
3.1 Gross margin R/ha R1 187 R3 067 R4 620 R7 756
3.2 Gross margin R/ton R279 R2 044 R2 718 R5 171
Source: BFAP, GSA, NWK and individual farmers – 2017.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison baseline: North West (Koster and Lichtenburg)

Gross margin per hectare: North West (Lichtenburg)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 250 -1 487 -425 638 1 700 2 763 3 825 4 888
R4 500 -1 300 -175 950 2 075 3 200 4 325 5 450
R4 750 -1 112 75 1 263 2 450 3 638 4 825 6 013
R5 000 -925 325 1 575 2 825 4 075 5 325 6 575
R5 161 -804 486 1 776 3 067 4 357 5 647 6 937
R5 500 -550 825 2 200 3 575 4 950 6 325 7 700
R5 750 362 1 075 2 513 3 950 5 388 6 825 8 263
R6 000 -175 1 325 2 825 4 325 5 825 7 325 8 825
R6 250 13 1 575 3 138 4 700 6 263 7 825 9 388
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R4 000 199 1 199 2 199 2 999 4 199 5 199 6 199
R4 250 449 1 511 2 574 3 424 4 699 5 761 6 824
R4 500 699 1 824 2 949 3 849 5 199 6 324 7 449
R4 750 949 2 136 3 324 4 274 5 699 6 886 8 074
R4 954 1 153 2 391 3 629 4 620 6 106 7 345 8 583
R5 250 1 449 2 761 4 074 5 124 6 699 8 011 9 324
R5 500 1 699 3 074 4 449 5 549 7 199 8 574 9 949
R5 750 1 949 3 386 4 824 5 974 7 699 9 136 10 574
R6 000 2 199 3 699 5 199 6 399 8 199 9 699 11 199
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R8 000 -2 035 190 2 415 4 640 6 865 9 090 11 315
R8 500 -1 660 690 3 040 5 390 7 740 10 090 12 440
R9 000 -1 285 1 190 3 665 6 140 8 615 11 090 13 565
R9 500 -910 1 690 4 290 6 890 9 490 12 090 14 690
R10 077 -477 2 268 5 012 7 756 10 501 13 245 15 989
R10 500 -160 2 690 5 540 8 390 11 240 14 090 16 940
R11 000 215 3 190 6 165 9 140 12 115 15 090 18 065
R11 500 590 3 690 6 790 9 890 12 990 16 090 19 190
R12 000 965 4 190 7 415 10 640 13 865 17 090 20 315
Soybeans margin above/below maize
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 161 R5 500 R5 750 R6 000
0.50 -3 612 -3 487 -3 362 -3 281 -3 112 -2 987 -2 862
0.75 -2 487 -2 299 -2 112 -1 991 -1 737 -1 549 -1 362
1.00 -1 362 -1 112 -862 -701 -362 -112 138
1.25 -237 76 388 589 1 013 1 326 1 638
1.50 888 1 263 1 638 1 880 2 388 2 763 3 138
1.75 2 013 2 451 2 888 3 170 3 763 4 201 4 638
2.00 3 138 3 638 4 138 4 460 5 138 5 638 6 138
2.25 4 263 4 826 5 388 5 750 6 513 7 076 7 638
2.50 5 388 6 013 6 638 7 041 7 888 8 513 9 138

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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