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 (Lichtenburg) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Lichtenburg region
Area North West: Lichtenburg
Crop Maize Soybeans Sunflower Groundnuts
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price / producer price: 2020 R/ton 2 624 5 235 5 258 8 875
Total deductions R/ton 281 141 347 –
– Transport differential R/ton 212 – 223 –
– Grade differential R/ton – – – –
– Marketing and handling R/ton 69 141 124 –
Price premiums R/ton – – – –
Net farm gate price R/ton 2 343 5 094 4 911 8 875
Gross income R/ha R9 957 R7 640 R8 348 R13 313

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 150 855 234 213
Fertilizer R/ha 1 992 901 930 1 204
Lime R/ha 300 – – 216
Seed R/ha 633 696 498 1 479
Fuel R/ha 1 136 615 811 1 155
Herbicide R/ha 788 488 159 625
Insecticide / Fungicides R/ha 384 66 16 665
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 959 538 662 1 273
Casual labour R/ha 171 – 171 831
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 270
Total variable expenditure R/ha R6 513 R4 159 R3 480 R7 932
Total variable expenditure R/ton R1 533 R2 773 R2 047 R5 288
3.1 Gross margin R/ha R3 444 R3 481 R4 868 R5 381
3.2 Gross margin R/ton R810 R2 321 R2 863 R3 587
Break-even yield T/ha 2.78 0.82 0.71 0.89
Break-even price R/ton R1 533 R2 773 R2 047 R5 288
Source: BFAP, GSA, NWK and individual farmers – 2019.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Lichtenburg)

Maize sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.25 3.75 4.25 4.75 5.25 5.75
R1 943 -1 170 -199 772 1 744 2 715 3 687 4 658
R2 043 -895 126 1 147 2 169 3 190 4 212 5 233
R2 143 -620 451 1 522 2 594 3 665 4 737 5 808
R2 243 -345 776 1 897 3 019 4 140 5 262 6 383
R2 343 -70 1 101 2 272 3 444 4 615 5 787 6 958
R2 443 205 1 426 2 647 3 869 5 090 6 312 7 533
R2 543 480 1 751 3 022 4 294 5 565 6 837 8 108
R2 643 755 2 076 3 397 4 719 6 040 7 362 8 683
R2 743 1 030 2 401 3 772 5 144 6 515 7 887 9 258
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 694 -639 535 1 708 2 881 4 055 5 228 6 402
R4 794 -564 635 1 833 3 031 4 230 5 428 6 627
R4 894 -489 735 1 958 3 181 4 405 5 628 6 852
R4 994 -414 835 2 083 3 331 4 580 5 828 7 077
R5 094 -339 935 2 208 3 481 4 755 6 028 7 302
R5 194 -264 1 035 2 333 3 631 4 930 6 228 7 527
R5 294 -189 1 135 2 458 3 781 5 105 6 428 7 752
R5 394 -114 1 235 2 583 3 931 5 280 6 628 7 977
R5 494 -39 1 335 2 708 4 081 5 455 6 828 8 202
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R4 511 1 030 2 158 3 286 4 188 5 541 6 669 7 796
R4 611 1 130 2 283 3 436 4 358 5 741 6 894 8 046
R4 711 1 230 2 408 3 586 4 528 5 941 7 119 8 296
R4 811 1 330 2 533 3 736 4 698 6 141 7 344 8 546
R4 911 1 430 2 658 3 886 4 868 6 341 7 569 8 796
R5 011 1 530 2 783 4 036 5 038 6 541 7 794 9 046
R5 111 1 630 2 908 4 186 5 208 6 741 8 019 9 296
R5 211 1 730 3 033 4 336 5 378 6 941 8 244 9 546
R5 311 1 830 3 158 4 486 5 548 7 141 8 469 9 796
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R8 475 -900 1 443 3 787 6 131 8 475 10 818 13 162
R8 575 -825 1 543 3 912 6 281 8 650 11 018 13 387
R8 675 -750 1 643 4 037 6 431 8 825 11 218 13 612
R8 775 -675 1 743 4 162 6 581 9 000 11 418 13 837
R8 875 -600 1 843 4 287 6 731 9 175 11 618 14 062
R8 975 -525 1 943 4 412 6 881 9 350 11 818 14 287
R9 075 -450 2 043 4 537 7 031 9 525 12 018 14 512
R9 175 -375 2 143 4 662 7 181 9 700 12 218 14 737
R9 275 -300 2 243 4 787 7 331 9 875 12 418 14 962
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
0.50 -5 206 -5 156 -5 106 -5 056 -5 006 -4 956 -4 906
0.75 -4 008 -3 933 -3 858 -3 783 -3 708 -3 633 -3 558
1.00 -2 809 -2 709 -2 609 -2 509 -2 409 -2 309 -2 209
1.25 -1 611 -1 486 -1 361 -1 236 -1 111 -986 -861
1.50 -412 -262 -112 38 188 338 488
1.75 786 961 1 136 1 311 1 486 1 661 1 836
2.00 1 984 2 184 2 384 2 584 2 784 2 984 3 184
2.25 3 183 3 408 3 633 3 858 4 083 4 308 4 533
2.50 4 381 4 631 4 881 5 131 5 381 5 631 5 881

Notes

  • Farm gate price for ground nuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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 – 72:16:8. Soybeans N:P:K – 10:12:8. Sunflower N:P:K – 40:9:0. Groundnuts N:P:K – 15:15:15.
  • 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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