OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2018/2019 Income and Cost Budgets

North West (Koster) – dryland

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

1. Income
Yield: deterministic Ton/ha 4.75 2.00 2.00
SAFEX simulated price / producer price: 2019 R/ton 2 393 5 250 5 174
Total deductions R/ton 211 59 221
– Transport differential R/ton 148 – 128
– Grade differential R/ton – – –
– Marketing and handling R/ton 63 59 93
Price premiums R/ton – – –
Net farm gate price R/ton 2 182 5 191 4 954
Gross income R/ha R10 364 R10 383 R9 908

2. Variable expenditures
Contracting R/ha – – –
Crop insurance R/ha 176 862 277
Fertilizer R/ha 2 354 982 1 409
Lime R/ha 325 – –
Seed R/ha 754 621 437
Fuel R/ha 947 750 788
Herbicide R/ha 983 665 406
Insecticide R/ha 587 252 578
Fungicides R/ha – – –
Marketing costs R/ha – – –
Repairs and maintenance R/ha 933 632 734
Casual labour R/ha 231 – 147
Aerial spray R/ha – – –
Other expenditure R/ha – – –
Total variable expenditure R/ha R7 288 R4 764 R4 776
Total variable expenditure R/ton R1 534 R2 382 R2 388
3.1 Gross margin R/ha R3 075 R5 619 R5 131
3.2 Gross margin R/ton R647 R2 809 R2 566
Source: BFAP, GSA, NWK and individual farmers – 2018.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Koster)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 791 1 225 2 423 3 621 4 819 6 017 7 215 8 413
R4 891 1 350 2 573 3 796 5 019 6 242 7 465 8 688
R4 991 1 475 2 723 3 971 5 219 6 467 7 715 8 963
R5 091 1 600 2 873 4 146 5 419 6 692 7 965 9 238
R5 191 1 725 3 023 4 321 5 619 6 917 8 215 9 513
R5 500 2 111 3 486 4 861 6 236 7 611 8 986 10 361
R5 750 2 424 3 861 5 299 6 736 8 174 9 611 11 049
R6 000 2 736 4 236 5 736 7 236 8 736 10 236 11 736
R6 250 3 049 4 611 6 174 7 736 9 299 10 861 12 424
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 554 916 2 054 3 193 4 331 5 470 6 608 7 747
R4 654 1 041 2 204 3 368 4 531 5 695 6 858 8 022
R4 754 1 166 2 354 3 543 4 731 5 920 7 108 8 297
R4 854 1 291 2 504 3 718 4 931 6 145 7 358 8 572
R4 954 1 416 2 654 3 893 5 131 6 370 7 608 8 847
R5 250 1 786 3 099 4 411 5 724 7 036 8 349 9 661
R5 500 2 099 3 474 4 849 6 224 7 599 8 974 10 349
R5 750 2 411 3 849 5 286 6 724 8 161 9 599 11 036
R6 000 2 724 4 224 5 724 7 224 8 724 10 224 11 724
Soybeans margin above/below maize
Yield Price (R/ton)
R4 891 R4 991 R5 091 R5 191 R5 291 R5 391 R5 491
0.50 -5 393 -5 343 -5 293 -5 243 -5 193 -5 143 -5 093
0.75 -4 170 -4 095 -4 020 -3 945 -3 870 -3 795 -3 720
1.00 -2 948 -2 848 -2 748 -2 648 -2 548 -2 448 -2 348
1.25 -1 725 -1 600 -1 475 -1 350 -1 225 -1 100 -975
2.00 1 944 2 144 2 344 2 544 2 744 2 944 3 144
1.75 721 896 1 071 1 246 1 421 1 596 1 771
2.00 1 944 2 144 2 344 2 544 2 744 2 944 3 144
2.25 3 167 3 392 3 617 3 842 4 067 4 292 4 517
2.50 4 389 4 639 4 889 5 139 5 389 5 639 5 889

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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