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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

Limpopo – irrigation

Income and cost budgets for wheat and barley for Limpopo
Area Limpopo
Crop Wheat Barley
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 6.10 5.60
SAFEX simulated price / producer price: 2019 R/ton 4 513 4 513
Total deductions R/ton 395 270
– Transport differential R/ton 217 217
– Grade differential R/ton 72
– Marketing, handling and statutory levies R/ton 107 53
Price premiums / Canola back-payment (10% of contracted price) R/ton 75
Net farm gate price R/ton 4 117 4 060
Gross income R/ha R25 116 R22 735

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 808 1 546
Fertilizer R/ha 5 645 5 167
Lime R/ha 653 653
Seed R/ha 930 1 288
Fuel R/ha 882 883
Herbicide R/ha 175 260
Insecticide R/ha 708 710
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 512 536
Casual labour R/ha
Irrigation: Water R/ha 836 760
Irrigation: Electricity R/ha 2 514 2 285
Aerial spray R/ha
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 511 465
Total variable expenditure R/ha R15 175 R14 553
Total variable expenditure R/ton R2 488 R2 599
3.1 Gross margin R/ha R9 941 R8 181
3.2 Gross margin R/ton R1 630 R1 461
Break-even yield T/ha 3.69 3.58
Break-even price R/ton R2 488 R2 599
Source: GSA, BFAP and Obaro, April 2019.
Gross margin comparison – Baseline: Limpopo
Gross margin comparison – Baseline: Limpopo irrigation

Gross margin per hectare: Limpopo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.50 5.75 6.00 6.10 6.25 6.50 6.75
R3 117 1 970 2 750 3 529 3 841 4 308 5 088 5 867
R3 367 3 345 4 187 5 029 5 366 5 871 6 713 7 555
R3 617 4 720 5 625 6 529 6 891 7 433 8 338 9 242
R3 867 6 095 7 062 8 029 8 416 8 996 9 963 10 930
R4 117 7 470 8 500 9 529 9 941 10 558 11 588 12 617
R4 367 8 845 9 937 11 029 11 466 12 121 13 213 14 305
R4 617 10 220 11 375 12 529 12 991 13 683 14 838 15 992
R4 867 11 595 12 812 14 029 14 516 15 246 16 463 17 680
R5 117 12 970 14 250 15 529 16 041 16 808 18 088 19 367
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.00 5.25 5.50 5.60 6.00 6.25 6.50
R3 060 746 1 511 2 275 2 581 3 805 4 570 5 335
R3 310 1 996 2 823 3 650 3 981 5 305 6 133 6 960
R3 560 3 246 4 136 5 025 5 381 6 805 7 695 8 585
R3 810 4 496 5 448 6 400 6 781 8 305 9 258 10 210
R4 060 5 746 6 761 7 775 8 181 9 805 10 820 11 835
R4 310 6 996 8 073 9 150 9 581 11 305 12 383 13 460
R4 560 8 246 9 386 10 525 10 981 12 805 13 945 15 085
R4 810 9 496 10 698 11 900 12 381 14 305 15 508 16 710
R5 060 10 746 12 011 13 275 13 781 15 805 17 070 18 335

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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