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

Western and Northern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower, groundnuts and grain sorghum for Western and Northern Free State
Area Wesselsbron Bothaville Western and Northern Free State
Crop Maize Maize (high) Soybeans Sunflower Groundnuts Grain sorghum
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.50 5.50 1.75 1.80 1.50 3.50
SAFEX simulated price / producer price: 2018 R/ton 2 045 2 045 5 221 5 243 10 140 2 911
Total deductions R/ton 332 271 63 312 – 80
– Transport differential R/ton 269 208 – 219 – –
– Grade differential R/ton – – – – – 17
– Marketing and handling R/ton 63 63 63 93 – 63
Price premiums R/ton – – – – – –
Net farm gate price R/ton 1 713 1 774 5 158 4 931 10 140 2 831
Gross income R/ha R7 708 R9 757 R9 026 R8 875 R16 561 R9 909

2. Variable expenditures
Contracting R/ha – – – – – –
Crop insurance R/ha 293 371 772 444 629 297
Fertilizer R/ha 2 310 2 847 812 1 395 845 1 711
Lime R/ha 425 425 – – 557 425
Seed R/ha 970 1 140 666 581 1 083 386
Fuel R/ha 941 900 836 913 931 913
Herbicide R/ha 605 605 268 732 615 553
Insecticide R/ha 174 174 408 33 583 517
Fungicides R/ha – – – – – –
Marketing costs R/ha – – – – – –
Repairs and maintenance R/ha 737 761 685 706 927 717
Casual labour R/ha 208 208 – – 900 –
Aerial spray R/ha – – – – – –
Other expenditure R/ha – – – – 500 –
Total variable expenditure R/ha R6 662 R7 431 R4 448 R4 804 R7 570 R5 519
Total variable expenditure R/ton R1 480 R1 351 R2 542 R2 669 R5 047 R1 577
3.1 Gross margin R/ha R1 046 R2 326 R4 578 R4 071 R8 990 R4 390
3.2 Gross margin R/ton R233 R423 R2 616 R2 262 R5 994 R1 254
Source: BFAP, GSA and Senwes – 2017.
Gross margin comparison – baseline: Western and Northern Free State
Gross margin comparison baseline: Western and Northern Free State

Gross margin per hectare: Northern Free State

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R4 250 -198 864 1 927 2 989 4 052 5 114 6 177
R4 500 52 1 177 2 302 3 427 4 552 5 677 6 802
R4 750 302 1 489 2 677 3 864 5 052 6 239 7 427
R5 000 552 1 802 3 052 4 302 5 552 6 802 8 052
R5 158 710 1 999 3 289 4 578 5 867 7 157 8 446
R5 500 1 052 2 427 3 802 5 177 6 552 7 927 9 302
R6 000 1 552 3 052 4 552 6 052 7 552 9 052 10 552
R6 500 2 052 3 677 5 302 6 927 8 552 10 177 11 802
R7 000 2 552 4 302 6 052 7 802 9 552 11 302 13 052
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.80 2.00 2.25 2.50
R4 250 -554 509 1 571 2 846 3 696 4 759 5 821
R4 500 -304 821 1 946 3 296 4 196 5 321 6 446
R4 750 -54 1 134 2 321 3 746 4 696 5 884 7 071
R4 931 127 1 360 2 592 4 071 5 058 6 290 7 523
R5 250 446 1 759 3 071 4 646 5 696 7 009 8 321
R5 500 696 2 071 3 446 5 096 6 196 7 571 8 946
R5 750 946 2 384 3 821 5 546 6 696 8 134 9 571
R6 000 1 196 2 696 4 196 5 996 7 196 8 696 10 196
R6 250 1 446 3 009 4 571 6 446 7 696 9 259 10 821
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R8 750 -333 2 080 4 492 6 905 9 317 11 730 14 142
R9 250 42 2 580 5 117 7 655 10 192 12 730 15 267
R9 750 417 3 080 5 742 8 405 11 067 13 730 16 392
R10 250 792 3 580 6 367 9 155 11 942 14 730 17 517
R10 140 710 3 470 6 230 8 990 11 750 14 511 17 271
R11 500 1 730 4 830 7 930 11 030 14 130 17 230 20 330
R12 000 2 105 5 330 8 555 11 780 15 005 18 230 21 455
R12 500 2 480 5 830 9 180 12 530 15 880 19 230 22 580
R13 000 2 855 6 330 9 805 13 280 16 755 20 230 23 705
Soybeans margin above/below maize
Yield Price (R/ton)
R4 500 R4 750 R5 000 R5 158 R5 500 R5 750 R6 000
0.75 -2 120 -1 932 -1 745 -1 626 -1 370 -1 182 -995
1.00 -995 -745 -495 -337 5 255 505
1.25 130 443 755 953 1 380 1 693 2 005
1.50 1 255 1 630 2 005 2 242 2 755 3 130 3 505
1.75 2 380 2 818 3 255 3 532 4 130 4 568 5 005
2.00 3 505 4 005 4 505 4 821 5 505 6 005 6 505
2.25 4 630 5 193 5 755 6 111 6 880 7 443 8 005
2.50 5 755 6 380 7 005 7 400 8 255 8 880 9 505
2.75 6 880 7 568 8 255 8 690 9 630 10 318 11 005

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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