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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

Limpopo (Loskop region) – irrigation

Income and cost budgets for maize and soybeans for Limpopo (Loskop)
Area Limpopo: Loskop
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2019 R/ton 2 610 5 235
Total deductions R/ton 335 141
– Transport differential R/ton 266
– Grade differential R/ton
– Marketing and handling R/ton 69 141
Price premiums R/ton
Net farm gate price R/ton 2 275 5 094
Gross income R/ha R27 297 R20 374

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 638 937
Fertilizer R/ha 6 443 2 490
Lime R/ha 640
Seed R/ha 3 585 2 015
Fuel R/ha 1 143 820
Herbicide R/ha 817 780
Insecticide / Fungicides R/ha 456 180
Marketing costs R/ha
Repairs and maintenance R/ha 436 471
Casual labour R/ha 197
Aerial spray R/ha
Irrigation electricity R/ha 4 123 2 967
Water R/ha 970 698
Other expenditure: scheduling/irrigation equipment R&M R/ha 372 394
Total variable expenditure R/ha R20 820 R11 752
Total variable expenditure R/ton R1 735 R2 938
3.1 Gross margin R/ha R6 477 R8 622
3.2 Gross margin R/ton R540 R2 155
Break-even yield T/ha 9.15 2.31
Break-even price R/ton R1 735 R2 938
Source: BFAP, GSA and individual farmers – 2019.
Gross margin comparison – baseline: Limpopo (Loskop region)
Figure 3.4: Gross margin comparison – Baseline: Limpopo (Loskop) irrigation

Gross margin per hectare: Limpopo (Loskop area)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R1 875 -1 135 -198 740 1 677 2 615 3 552 4 489
R1 975 -85 902 1 890 2 877 3 865 4 852 5 839
R2 075 965 2 002 3 040 4 077 5 115 6 152 7 189
R2 175 2 015 3 102 4 190 5 277 6 365 7 452 8 539
R2 275 3 065 4 202 5 340 6 477 7 615 8 752 9 889
R2 375 4 115 5 302 6 490 7 677 8 865 10 052 11 239
R2 475 5 165 6 402 7 640 8 877 10 115 11 352 12 589
R2 575 6 215 7 502 8 790 10 077 11 365 12 652 13 939
R2 675 7 265 8 602 9 940 11 277 12 615 13 952 15 289
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 694 3 502 4 675 5 848 7 022 8 195 9 369 10 542
R4 794 3 827 5 025 6 223 7 422 8 620 9 819 11 017
R4 894 4 152 5 375 6 598 7 822 9 045 10 269 11 492
R4 994 4 477 5 725 6 973 8 222 9 470 10 719 11 967
R5 094 4 802 6 075 7 348 8 622 9 895 11 169 12 442
R5 194 5 127 6 425 7 723 9 022 10 320 11 619 12 917
R5 294 5 452 6 775 8 098 9 422 10 745 12 069 13 392
R5 394 5 777 7 125 8 473 9 822 11 170 12 519 13 867
R5 494 6 102 7 475 8 848 10 222 11 595 12 969 14 342
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
3.00 -3 849 -3 549 -3 249 -2 949 -2 649 -2 349 -2 049
3.25 -2 651 -2 326 -2 001 -1 676 -1 351 -1 026 -701
3.50 -1 452 -1 102 -752 -402 -52 298 648
3.75 -254 121 496 871 1 246 1 621 1 996
4.00 944 1 344 1 744 2 144 2 544 2 944 3 344
4.25 2 143 2 568 2 993 3 418 3 843 4 268 4 693
4.50 3 341 3 791 4 241 4 691 5 141 5 591 6 041
4.75 4 540 5 015 5 490 5 965 6 440 6 915 7 390
5.00 5 738 6 238 6 738 7 238 7 738 8 238 8 738

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 – 240:42:48. Soybeans N:P:K – 14:38:45.
  • Microelements 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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