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OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


2019/2020 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 1.80 1.50
SAFEX simulated price / producer price: 2020 R/ton 2 610 5 235 5 258 12 000
Total deductions R/ton 373 141 382 345
– Transport differential R/ton 304 258
– Grade differential R/ton
– Marketing and handling R/ton 69 141 124 345
Price premiums R/ton
Net farm gate price R/ton 2 237 5 094 4 876 11 655
Gross income R/ha R12 302 R10 187 R8 776 R17 483

2. Variable expenditures

Contracting R/ha 1 250
Crop insurance R/ha 369 1 019 439 1 416
Fertilizer R/ha 3 157 1 201 933 1 426
Lime R/ha 541 460
Seed R/ha 1 434 1 159 671 3 408
Fuel R/ha 1 179 787 840 740
Herbicide R/ha 1 089 900 997 1 240
Insecticide / Fungicides R/ha 511 715
Marketing costs R/ha
Repairs and maintenance R/ha 917 650 691 581
Casual labour R/ha 171 1 760
Aerial spray R/ha
Other expenditure R/ha 83 120
Total variable expenditure R/ha R9 367 R6 514 R4 713 R13 561
Total variable expenditure R/ton R1 703 R3 257 R2 618 R9 041
3.1 Gross margin R/ha R2 935 R3 673 R4 063 R3 921
3.2 Gross margin R/ton R534 R1 836 R2 257 R2 614
Break-even yield T/ha 4.19 1.28 0.97 1.16
Break-even price R/ton R1 703 R3 257 R2 618 R9 041
Source: BFAP, GSA, VKB and individual farmers – 2019.
Gross margin comparison – baseline: Eastern Free State
Figure 2.3: Gross margin comparison – Baseline: Eastern Free State

Gross margin per hectare: Eastern Free State

Maize sensitivity analysis
Yield (t/ha)
Producers price 4.00 4.50 5.00 5.50 6.00 6.50 7.00
R1 837 -2 020 -1 102 -184 735 1 653 2 572 3 490
R1 937 -1 620 -652 316 1 285 2 253 3 222 4 190
R2 037 -1 220 -202 816 1 835 2 853 3 872 4 890
R2 137 -820 248 1 316 2 385 3 453 4 522 5 590
R2 237 -420 698 1 816 2 935 4 053 5 172 6 290
R2 337 -20 1 148 2 316 3 485 4 653 5 822 6 990
R2 437 380 1 598 2 816 4 035 5 253 6 472 7 690
R2 537 780 2 048 3 316 4 585 5 853 7 122 8 390
R2 637 1 180 2 498 3 816 5 135 6 453 7 772 9 090
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 494 -647 526 1 700 2 873 4 046 5 220 6 393
R4 794 -522 676 1 875 3 073 4 271 5 470 6 668
R4 894 -397 826 2 050 3 273 4 496 5 720 6 943
R4 994 -272 976 2 225 3 473 4 721 5 970 7 218
R5 094 -147 1 126 2 400 3 673 4 946 6 220 7 493
R5 194 -22 1 276 2 575 3 873 5 171 6 470 7 768
R5 294 103 1 426 2 750 4 073 5 396 6 720 8 043
R5 394 228 1 576 2 925 4 273 5 621 6 970 8 318
R5 494 353 1 726 3 100 4 473 5 846 7 220 8 593
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.80 2.00 2.25 2.50
R4 476 -237 882 2 001 3 343 4 238 5 357 6 476
R4 576 -137 1 007 2 151 3 523 4 438 5 582 6 726
R4 676 -37 1 132 2 301 3 703 4 638 5 807 6 976
R4 776 63 1 257 2 451 3 883 4 838 6 032 7 226
R4 876 163 1 382 2 601 4 063 5 038 6 257 7 476
R4 976 263 1 507 2 751 4 243 5 238 6 482 7 726
R5 076 363 1 632 2 901 4 423 5 438 6 707 7 976
R5 176 463 1 757 3 051 4 603 5 638 6 932 8 226
R5 276 563 1 882 3 201 4 783 5 838 7 157 8 476
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
1.00 -4 655 -4 555 -4 455 -4 355 -4 255 -4 155 -4 055
1.25 -3 457 -3 332 -3 207 -3 082 -2 957 -2 832 -2 707
1.50 -2 259 -2 109 -1 959 -1 809 -1 659 -1 509 -1 359
1.75 -1 060 -885 -710 -535 -360 -185 -10
2.00 138 338 538 738 938 1 138 1 338
2.25 1 337 1 562 1 787 2 012 2 237 2 462 2 687
2.50 2 535 2 785 3 035 3 285 3 535 3 785 4 035
2.75 3 733 4 008 4 283 4 558 4 833 5 108 5 383
3.00 4 932 5 232 5 532 5 832 6 132 6 432 6 732

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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 100:32:16. Soybeans N:P:K – 10:15:20. Sunflower N:P:K – 35:8:8. Dry beans N:P:K – 40:15:20.
  • Micro-elements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • 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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