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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 Income and Cost Budgets

Eastern Free State – irrigation

Income and cost budgets for wheat for Eastern Free State
Area Eastern Free State
Crop Wheat
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 6.00
SAFEX simulated price / producer price: 2019 R/ton 4 513
Total deductions R/ton 459
– Transport differential R/ton 288
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107
Price premiums / Canola back-payment (10% of contracted price) R/ton
Net farm gate price R/ton 4 054
Gross income R/ha R24 322

2. Variable expenditures

Contracting R/ha 1 138
Crop insurance R/ha 1 946
Fertilizer R/ha 4 841
Lime R/ha 580
Seed R/ha 1 800
Fuel R/ha 736
Herbicide R/ha 149
Insecticide R/ha 286
Fungicides R/ha
Marketing costs R/ha 546
Repairs and maintenance R/ha 919
Casual labour R/ha 231
Irrigation: Water R/ha 563
Irrigation: Electricity R/ha 1 841
Aerial spray R/ha
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha
Total variable expenditure R/ha R13 172
Total variable expenditure R/ton R2 195
3.1 Gross margin R/ha R11 151
3.2 Gross margin R/ton R1 858
Break-even yield T/ha 3.25
Break-even price R/ton R2 195
Source: VKB, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Free State
Gross margin comparison – Baseline: Free State irrigation

Gross margin per hectare: Free State

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R3 054 2 860 3 624 4 387 5 151 5 914 6 677 7 441
R3 304 4 173 4 999 5 825 6 651 7 477 8 302 9 128
R3 554 5 485 6 374 7 262 8 151 9 039 9 927 10 816
R3 804 6 798 7 749 8 700 9 651 10 602 11 552 12 503
R4 054 8 110 9 124 10 137 11 151 12 164 13 177 14 191
R4 304 9 423 10 499 11 575 12 651 13 727 14 802 15 878
R4 554 10 735 11 874 13 012 14 151 15 289 16 427 17 566
R4 804 12 048 13 249 14 450 15 651 16 852 18 052 19 253
R5 054 13 360 14 624 15 887 17 151 18 414 19 677 20 941

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 costs for wheat, barley and oats seeds reflect a combination of own and purchased seed.
  • It is important to note that overhead costs are not included and should be accounted for. Overhead costs such as interest on production loans, labour, management and administration will vary to a large extent from producer to producer. Producers will therefore have to deduct the farm business' overhead cost from the gross margins as stipulated in the tables and figures to calculate the net income per crop.
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