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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

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 6.50 2.50 4.00 6.00 2.00
SAFEX simulated price / producer price: 2019 R/ton 2 610 5 235 2 942 2 610 5 235
Total deductions R/ton 307 141 69 356 141
– Transport differential R/ton 238 287
– Grade differential R/ton
– Marketing and handling R/ton 69 141 69 69 141
Price premiums R/ton
Net farm gate price R/ton 2 303 5 094 2 873 2 254 5 094
Gross income R/ha R14 968 R12 734 R11 491 R13 523 R10 187

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 494 1 044 517 446 835
Fertilizer R/ha 3 479 1 183 1 830 3 262 1 070
Lime R/ha 600 600 600
Seed R/ha 2 305 1 159 528 2 049 1 063
Fuel R/ha 1 005 637 1 072 1 166 620
Herbicide R/ha 1 089 900 631 1 089 900
Insecticide / Fungicides R/ha 511 715 746 511 715
Marketing costs R/ha
Repairs and maintenance R/ha 879 620 799 869 532
Casual labour R/ha 171 171 171
Aerial spray R/ha
Other expenditure R/ha 192
Total variable expenditure R/ha R10 532 R6 258 R7 086 R10 161 R5 735
Total variable expenditure R/ton R1 620 R2 503 R1 772 R1 694 R2 867
3.1 Gross margin R/ha R4 436 R6 476 R4 405 R3 361 R4 452
3.2 Gross margin R/ton R682 R2 590 R1 101 R560 R2 226
Break-even yield T/ha 4.57 1.23 2.47 4.51 1.13
Break-even price R/ton R1 620 R2 503 R1 772 R1 694 R2 867
Source: BFAP, GSA and individual farmers – 2019.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison - Baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Maize sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 5.00 5.50 6.00 <6.50.50 27.00/th> 37.50/th> 38.00/th>
R1 903 -1 018 -67 885 1 836 2 788 3 739 4 690
R2 003 - 518 483 1 485 2 486 3 488 4 489 5 490
R2 103 -18 1 033 2 085 3 136 4 188 5 239 6 290
R2 203 482 1 583 2 685 3 786 4 888 5 989 7 090
R2 303 982 2 133 3 285 4 436 5 588 6 739 7 890
R2 403 1 482 2 683 3 885 5 086 6 288 7 489 8 690
R2 503 1 982 3 233 4 485 5 736 6 988 8 239 9 490
R2 603 2 482 3 783 5 085 6 386 7 688 8 989 10 290
R2 703 2 982 4 333 5 685 7 036 8 388 9 739 11 090
Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 694 1 956 3 129 4 302 5 476 6 649 7 822 8 996
R4 794 2 131 3 329 4 527 5 726 6 924 8 122 9 321
R4 894 2 306 3 529 4 752 5 976 7 199 8 422 9 646
R4 994 2 481 3 729 4 977 6 226 7 474 8 722 9 971
R5 094 2 656 3 929 5 202 6 476 7 749 9 022 10 296
R5 194 2 831 4 129 5 427 6 726 8 024 9 322 10 621
R5 294 3 006 4 329 5 652 6 976 8 299 9 622 10 946
R5 394 3 181 4 529 5 877 7 226 8 574 9 922 11 271
R5 494 3 356 4 729 6 102 7 476 8 849 10 222 11 596
Maize sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 4.50 5.00 5.50 6.00 6.50 7.00 7.50
R1 854 -1 819 -893 34 961 1 888 2 815 3 742
R1 954 -1 369 -393 584 1 561 2 538 3 515 4 492
R2 054 -919 107 1 134 2 161 3 188 4 215 5 242
R2 154 -469 607 1 684 2 761 3 838 4 915 5 992
R2 254 -19 1 107 2 234 3 361 4 488 5 615 6 742
R2 354 431 1 607 2 784 3 961 5 138 6 315 7 492
R2 454 881 2 107 3 334 4 561 5 788 7 015 8 242
R2 554 1 331 2 607 3 884 5 161 6 438 7 715 8 992
R2 654 1 781 3 107 4 434 5 761 7 088 8 415 9 742
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 694 132 1 305 2 479 3 652 4 826 5 999 7 172
R4 794 257 1 455 2 654 3 852 5 051 6 249 7 447
R4 894 382 1 605 2 829 4 052 5 276 6 499 7 722
R4 994 507 1 755 3 004 4 252 5 501 6 749 7 997
R5 094 632 1 905 3 179 4 452 5 726 6 999 8 272
R5 194 757 2 055 3 354 4 652 5 951 7 249 8 547
R5 294 882 2 205 3 529 4 852 6 176 7 499 8 822
R5 394 1 007 2 355 3 704 5 052 6 401 7 749 9 097
R5 494 1 132 2 505 3 879 5 252 6 626 7 999 9 372
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
1.50 -3 504 -3 354 -3 204 -3 054 -2 904 -2 754 -2 604
1.75 -2 306 -2 131 -1 956 -1 781 -1 606 -1 431 -1 256
2.00 -1 107 -907 -707 -507 -307 -107 93
2.25 91 316 541 766 991 1 216 1 441
2.50 1 289 1 539 1 789 2 039 2 289 2 539 2 789
2.75 2 488 2 763 3 038 3 313 3 588 3 863 4 138
3.00 3 686 3 986 4 286 4 586 4 886 5 186 5 486
3.25 4 885 5 210 5 535 5 860 6 185 6 510 6 835
3.50 6 083 6 433 6 783 7 133 7 483 7 833 8 183
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
1.00 -4 303 -4 203 -4 103 -4 003 -3 903 -3 803 -3 703
1.25 -3 104 -2 979 -2 854 -2 729 -2 604 -2 479 -2 354
1.50 -1 906 -1 756 -1 606 -1 456 -1 306 -1 156 -1 006
1.75 -707 -532 -357 -182 -7 168 343
2.00 491 691 891 1 091 1 291 1 491 1 691
2.25 1 689 1 914 2 139 2 364 2 589 2 814 3 039
2.50 2 888 3 138 3 388 3 638 3 888 4 138 4 388
2.75 4 086 4 361 4 636 4 911 5 186 5 461 5 736
3.00 5 284 5 584 5 884 6 184 6 484 6 784 7 084

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 (Middelburg/Trichard) N:P:K – 130:21:30. Soybeans (Middelburg/Trichard) N:P:K – 10:14:20. Grain sorghum N:P:K – 87:8:11. Maize (Ermelo) N:P:K – 117:21:30. Soybeans (Ermelo) N:P:K – 10:12:18.
  • 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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