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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

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Caledon region)
Area Southern Cape: Caledon
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.20 3.20 1.75 3.00 1.30
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513 5 230 3 144 3 250
Total deductions R/ton 751 633 85 5 5
– Transport differential R/ton 580 580 80
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107 53 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 523
Net farm gate price R/ton 3 762 3 837 5 668 3 139 3 245
Gross income R/ha R12 037 R12 277 R9 920 R9 418 R4 219

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 34 41 33 31 14
Fertilizer R/ha 2 668 2 516 2 295 2 271 477
Lime R/ha 110 110 110 110 110
Seed R/ha 696 587 1 006 400 970
Fuel R/ha 794 764 705 779 720
Herbicide R/ha 681 708 817 423 720
Insecticide R/ha 170 192 619 139 174
Fungicides R/ha 689 895 415 588 395
Marketing costs R/ha 37 47 13
Repairs and maintenance R/ha 730 744 639 715 670
Casual labour R/ha 7 7 7 7 7
Aerial spray R/ha
Other expenditure R/ha 126 120 110 93 93
Total variable expenditure R/ha R6 741 R6 730 R6 769 R5 556 R4 349
Total variable expenditure R/ton R2 107 R2 103 R3 868 R1 852 R3 345
3.1 Gross margin R/ha R5 296 R5 547 R3 150 R3 862 -R130
3.2 Gross margin R/ton R1 655 R1 733 R1 800 R1 287 -R100
Break-even yield T/ha 1.79 1.75 1.19 1.77 1.34
Break-even price R/ton R2 107 R2 103 R3 868 R1 852 R3 345
Source: Overberg Agri, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Southern Cape (Caledon region)
Gross margin comparison – Baseline: Southern Cape (Caledon region)

Gross margin per hectare: Southern Cape – Overberg, Caledon

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 3.00 3.20 3.50 3.75 4.00
R2 762 -527 163 1 544 2 096 2 925 3 615 4 306
R3 012 35 788 2 294 2 896 3 800 4 553 5 306
R3 262 598 1 413 3 044 3 696 4 675 5 490 6 306
R3 512 1 160 2 038 3 794 4 496 5 550 6 428 7 306
R3 762 1 723 2 663 4 544 5 296 6 425 7 365 8 306
R4 012 2 285 3 288 5 294 6 096 7 300 8 303 9 306
R4 262 2 848 3 913 6 044 6 896 8 175 9 240 10 306
R4 512 3 410 4 538 6 794 7 696 9 050 10 178 11 306
R4 762 3 973 5 163 7 544 8 496 9 925 11 115 12 306
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 3.00 3.20 3.50 3.75 4.00
R2 837 -348 362 1 780 2 347 3 198 3 907 4 616
R3 087 215 987 2 530 3 147 4 073 4 845 5 616
R3 337 777 1 612 3 280 3 947 4 948 5 782 6 616
R3 587 1 340 2 237 4 030 4 747 5 823 6 720 7 616
R3 837 1 902 2 862 4 780 5 547 6 698 7 657 8 616
R4 087 2 465 3 487 5 530 6 347 7 573 8 595 9 616
R4 337 3 027 4 112 6 280 7 147 8 448 9 532 10 616
R4 587 3 590 4 737 7 030 7 947 9 323 10 470 11 616
R4 837 4 152 5 362 7 780 8 747 10 198 11 407 12 616
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.50 2.75
R4 668 -2 101 -934 233 1 400 2 567 4 901 6 069
R4 918 -1 851 -621 608 1 838 3 067 5 526 6 756
R5 168 -1 601 -309 983 2 275 3 567 6 151 7 444
R5 418 -1 351 4 1 358 2 713 4 067 6 776 8 131
R5 668 -1 101 316 1 733 3 150 4 567 7 401 8 819
R5 918 -851 629 2 108 3 588 5 067 8 026 9 506
R6 168 -601 941 2 483 4 025 5 567 8 651 10 194
R6 418 -351 1 254 2 858 4 463 6 067 9 276 10 881
R6 668 -101 1 566 3 233 4 900 6 567 9 901 11 569
Canola margin above/below wheat
Yield Price (R/ton)
R4 918 R5 168 R5 418 R5 668 R5 918 R6 168 R6 418
0.75 -8 377 -8 190 -8 002 -7 815 -7 627 -7 440 -7 252
1.00 -7 147 -6 897 -6 647 -6 397 -6 147 -5 897 -5 647
1.25 -5 918 -5 605 -5 293 -4 980 -4 668 -4 355 -4 043
1.50 -4 688 -4 313 -3 938 -3 563 -3 188 -2 813 -2 438
1.75 -3 459 -3 021 -2 584 -2 146 -1 709 -1 271 -834
2.00 -2 229 -1 729 -1 229 -729 -229 271 771
2.50 230 855 1 480 2 105 2 730 3 355 3 980
2.75 1 460 2 147 2 835 3 522 4 210 4 897 5 585
3.00 2 689 3 439 4 189 4 939 5 689 6 439 7 189

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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