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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 (Swellendam / Heidelberg)
Area Southern Cape: Swellendam / Heidelberg
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 3.00 1.65 2.50 1.80
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513 5 230 3 144 3 250
Total deductions R/ton 751 633 5 5 5
– Transport differential R/ton 580 580
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107 53 5 5 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 523
Net farm gate price R/ton 3 762 3 837 5 748 3 144 3 250
Gross income R/ha R11 285 R11 510 R9 485 R7 860 R5 850

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 32 38 31 26 19
Fertilizer R/ha 1 821 1 735 1 882 1 312 1 009
Lime R/ha 107 107 107 107 107
Seed R/ha 897 417 629 464 984
Fuel R/ha 522 533 533 521 499
Herbicide R/ha 1 154 959 671 468 819
Insecticide R/ha 195 233 658 143 112
Fungicides R/ha 555 1 047 284 527 181
Marketing costs R/ha 37 47 13
Repairs and maintenance R/ha 657 696 634 579 579
Casual labour R/ha 7 7 7 7 7
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R5 983 R5 818 R5 447 R4 154 R4 316
Total variable expenditure R/ton R1 994 R1 939 R3 301 R1 662 R2 398
3.1 Gross margin R/ha R5 302 R5 691 R4 038 R3 706 R1 534
3.2 Gross margin R/ton R1 767 R1 897 R2 447 R1 482 R852
Break-even yield T/ha 1.59 1.52 0.95 1.32 1.33
Break-even price R/ton R1 994 R1 939 R3 301 R1 662 R2 398
Source: SSK, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Southern Cape (Swellendam / Heidelberg)
Gross margin comparison – Baseline: Southern Cape (Swellendam / Heidelberg)

Gross margin per hectare: Southern Cape – Swellendam / Heidelberg

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 762 231 921 1 612 2 302 2 992 3 683 4 373
R3 012 793 1 546 2 299 3 052 3 805 4 558 5 311
R3 262 1 356 2 171 2 987 3 802 4 617 5 433 6 248
R3 512 1 918 2 796 3 674 4 552 5 430 6 308 7 186
R3 762 2 481 3 421 4 362 5 302 6 242 7 183 8 123
R4 012 3 043 4 046 5 049 6 052 7 055 8 058 9 061
R4 262 3 606 4 671 5 737 6 802 7 867 8 933 9 998
R4 512 4 168 5 296 6 424 7 552 8 680 9 808 10 936
R4 762 4 731 5 921 7 112 8 302 9 492 10 683 11 873
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 837 564 1 273 1 982 2 691 3 400 4 110 4 819
R3 087 1 126 1 898 2 670 3 441 4 213 4 985 5 756
R3 337 1 689 2 523 3 357 4 191 5 025 5 860 6 694
R3 587 2 251 3 148 4 045 4 941 5 838 6 735 7 631
R3 837 2 814 3 773 4 732 5 691 6 650 7 610 8 569
R4 087 3 376 4 398 5 420 6 441 7 463 8 485 9 506
R4 337 3 939 5 023 6 107 7 191 8 275 9 360 10 444
R4 587 4 501 5 648 6 795 7 941 9 088 10 235 11 381
R4 837 5 064 6 273 7 482 8 691 9 900 11 110 12 319
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.65 2.00 2.25 2.50
R4 748 -699 488 1 675 2 388 4 050 5 237 6 424
R4 998 -449 801 2 050 2 800 4 550 5 799 7 049
R5 248 -199 1 113 2 425 3 213 5 050 6 362 7 674
R5 498 51 1 426 2 800 3 625 5 550 6 924 8 299
R5 748 301 1 738 3 175 4 038 6 050 7 487 8 924
R5 998 551 2 051 3 550 4 450 6 550 8 049 9 549
R6 248 801 2 363 3 925 4 863 7 050 8 612 10 174
R6 498 1 051 2 676 4 300 5 275 7 550 9 174 10 799
R6 748 1 301 2 988 4 675 5 688 8 050 9 737 11 424
Canola margin above/below wheat
Yield Price (R/ton)
R4 998 R5 248 R5 498 R5 748 R5 998 R6 248 R6 498
0.75 -7 000 -6 813 -6 625 -6 438 -6 250 -6 063 -5 875
1.00 -5 751 -5 501 -5 251 -5 001 -4 751 -4 501 -4 251
1.25 -4 501 -4 189 -3 876 -3 564 -3 251 -2 939 -2 626
1.50 -3 252 -2 877 -2 502 -2 127 -1 752 -1 377 -1 002
1.65 -2 502 -2 089 -1 677 -1 264 -852 -439 -27
2.00 -752 -252 248 748 1 248 1 748 2 248
2.25 497 1 060 1 622 2 185 2 747 3 310 3 872
2.50 1 747 2 372 2 997 3 622 4 247 4 872 5 497
2.75 2 996 3 682 4 371 5 059 5 746 6 434 7 121

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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