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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

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 3.80 3.00 7.00
SAFEX simulated price / producer price: 2020 R/ton 2 610 5 235 5 258 2 942
Total deductions R/ton 229 141 303 63
– Transport differential R/ton 160 179
– Grade differential R/ton
– Marketing and handling R/ton 69 141 124 63
Price premiums R/ton
Net farm gate price R/ton 2 381 5 094 4 955 2 879
Gross income R/ha R28 569 R19 355 R14 864 R20 151

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 171 890 306 513
Fertilizer R/ha 6 443 2 370 1 918 3 505
Lime R/ha 640 416
Seed R/ha 3 585 2 015 782 704
Fuel R/ha 1 403 829 1 070 1 117
Herbicide R/ha 842 780 231 631
Insecticide / Fungicides R/ha 403 180 572 353
Marketing costs R/ha
Repairs and maintenance R/ha 897 378 696 649
Casual labour R/ha 197 105 133
Aerial spray R/ha 213
Irrigation electricity R/ha 3 101 2 425 1 692 2 537
Water R/ha 2 140 2 140 1 167 1 751
Other expenditure: scheduling/irrigation equipment R&M R/ha 372 394 372 394
Total variable expenditure R/ha R21 194 R11 934 R8 910 R12 915
Total variable expenditure R/ton R1 766 R3 141 R2 970 R1 845
3.1 Gross margin R/ha R7 375 R7 421 R5 954 R7 236
3.2 Gross margin R/ton R615 R1 953 R1 985 R1 034
Break-even yield T/ha 8.90 2.34 1.80 4.49
Break-even price R/ton R1 766 R3 141 R2 970 R1 845
Source: BFAP, GSA, NWK and individual farmers – 2019.
Gross margin comparison – baseline: North West (Brits)
Figure 3.3: Gross margin comparison – Baseline: North West (Brits region) irrigation

Gross margin per hectare: North West (Brits)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R1 981 -396 594 1 585 2 575 3 566 4 556 5 546
R2 081 654 1 694 2 735 3 775 4 816 5 856 6 896
R2 181 1 704 2 794 3 885 4 975 6 066 7 156 8 246
R2 281 2 754 3 894 5 035 6 175 7 316 8 456 9 596
R2 381 3 804 4 994 6 185 7 375 8 566 9 756 10 946
R2 481 4 854 6 094 7 335 8 575 9 815.60 11 056 12 296
R2 581 5 904 7 194 8 485 9 775 11 066 12 356 13 646
R2 681 6 954 8 294 9 635 10 975 12 316 13 656 14 996
R2 781 8 004 9 394 10 785 12 175 13 566 14 956 16 346
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R4 694 2 146 3 320 4 493 5 901 6 840 8 013 9 187
R4 794 2 446 3 645 4 843 6 281 7 240 8 438 9 637
R4 894 2 746 3 970 5 193 6 661 7 640 8 863 10 087
R4 994 3 046 4 295 5 543 7 041 8 040 9 288 10 537
R5 094 3 346 4 620 5 893 7 421 8 440 9 713 10 987
R5 194 3 646 4 945 6 243 7 801 8 840 10 138 11 437
R5 294 3 946 5 270 6 593 8 181 9 240 10 563 11 887
R5 394 4 246 5 595 6 943 8 561 9 640 10 988 12 337
R5 494 4 546 5 920 7 293 8 941 10 040 11 413 12 787
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R4 555 1 338 2 476 3 615 4 754 5 892 7 031 8 170
R4 655 1 563 2 726 3 890 5 054 6 217 7 381 8 545
R4 755 1 788 2 976 4 165 5 354 6 542 7 731 8 920
R4 855 2 013 3 226 4 440 5 654 6 867 8 081 9 295
R4 955 2 238 3 476 4 715 5 954 7 192 8 431 9 670
R5 055 2 463 3 726 4 990 6 254 7 517 8 781 10 045
R5 155 2 688 3 976 5 265 6 554 7 842 9 131 10 420
R5 255 2 913 4 226 5 540 6 854 8 167 9 481 10 795
R5 355 3 138 4 476 5 815 7 154 8 492 9 831 11 170
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
2.75 -6 127 -5 852 -5 577 -5 302 -5 027 -4 752 -4 477
3.00 -4 929 -4 629 -4 329 -4 029 -3 729 -3 429 -3 129
3.25 -3 730 -3 405 -3 080 -2 755 -2 430 -2 105 -1 780
3.50 -2 532 -2 182 -1 832 -1 482 -1 132 -782 -432
3.80 -1 094 -714 -334 46 426 806 1 186
4.00 -135 265 665 1 065 1 465 1 865 2 265
4.25 1 063 1 488 1 913 2 338 2 763 3 188 3 613
4.50 2 261 2 711 3 161 3 611 4 061 4 511 4 961
4.75 3 460 3 935 4 410 4 885 5 360 5 835 6 310

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 – 14:36:42. Sunflower N:P:K – 60:15:24. Grain sorghum N:P:K – 140:25:28.
  • 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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