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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

Free State – dryland

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

1. Income

Yield: deterministic Ton/ha 2.50 2.50
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513
Total deductions R/ton 459 454
– Transport differential R/ton 288 283
– Grade differential R/ton 64 64
– Marketing, handling and statutory levies R/ton 107 107
Price premiums / Canola back-payment (10% of contracted price) R/ton
Net farm gate price R/ton 4 054 4 059
Gross income R/ha R10 134 R10 147

2. Variable expenditures

Contracting R/ha 788 788
Crop insurance R/ha 811 639
Fertilizer R/ha 1 719 1 719
Lime R/ha 580 580
Seed R/ha 396 396
Fuel R/ha 872 872
Herbicide R/ha 297 297
Insecticide R/ha 152 152
Fungicides R/ha
Marketing costs R/ha 105 105
Repairs and maintenance R/ha 562 562
Casual labour R/ha
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R6 282 R6 110
Total variable expenditure R/ton R2 513 R2 444
3.1 Gross margin R/ha R3 853 R4 037
3.2 Gross margin R/ton R1 541 R1 615
Break-even yield T/ha 1.55 1.51
Break-even price R/ton R2 513 R2 444
Source: VKB, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Free State (Eastern and Central regions)
Gross margin comparison – Baseline: Free State (Eastern and Central regions)

Gross margin per hectare: Free State

Wheat sensitivity analysis: Eastern Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 054 -938 -174 589 1 353 2 116 2 879 3 643
R3 304 -500 326 1 152 1 978 2 804 3 629 4 455
R3 554 -63 826 1 714 2 603 3 491 4 379 5 268
R3 804 375 1 326 2 277 3 228 4 179 5 129 6 080
R4 054 812 1 826 2 839 3 853 4 866 5 879 6 893
R4 304 1 250 2 326 3 402 4 478 5 554 6 629 7 705
R4 554 1 687 2 826 3 964 5 103 6 241 7 379 8 518
R4 804 2 125 3 326 4 527 5 728 6 929 8 129 9 330
R5 054 2 562 3 826 5 089 6 353 7 616 8 879 10 143
Wheat sensitivity analysis: Central Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 059 -757 7 772 1 537 2 301 3 066 3 831
R3 309 -320 507 1 334 2 162 2 989 3 816 4 643
R3 559 118 1 007 1 897 2 787 3 676 4 566 5 456
R3 809 555 1 507 2 459 3 412 4 364 5 316 6 268
R4 059 993 2 007 3 022 4 037 5 051 6 066 7 081
R4 309 1 430 2 507 3 584 4 662 5 739 6 816 7 893
R4 559 1 868 3 007 4 147 5 287 6 426 7 566 8 706
R4 809 2 305 3 507 4 709 5 912 7 114 8 316 9 518
R5 059 2 743 4 007 5 272 6 537 7 801 9 066 10 331

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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