OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

INCOME & COST BUDGETS  //  Summer Crops 2020/2021

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: 2021 R/ton 2 552 5 897 5 979 8 875
Total deductions R/ton 280 143 325 –
– Transport differential R/ton 217 – 232 –
– Grade differential R/ton – – – –
– Marketing and handling R/ton 63 143 93 –
Price premiums R/ton – – – –
Net farm gate price R/ton 2 272 5 754 5 654 8 875
Gross income R/ha R9 656 R8 631 R9 611 R13 313

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 145 966 270 213
Fertilizer R/ha 1 888 846 878 1 121
Lime R/ha 306 – – 214
Seed R/ha 811 654 503 1 577
Fuel R/ha 882 705 717 1 027
Herbicide R/ha 894 538 183 727
Insecticide / Fungicides R/ha 17 66 17 757
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 928 512 512 1 179
Casual labour R/ha 187 – 162 862
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 288
Total variable expenditure R/ha R6 058 R4 288 R3 241 R7 963
Total variable expenditure R/ton R1 425 R2 859 R1 907 R5 309
3.1 Gross margin R/ha R3 597 R4 343 R6 370 R5 349
3.2 Gross margin R/ton R846 R2 896 R3 747 R3 566
Break-even yield T/ha 2.67 0.75 0.57 0.90
Break-even price R/ton R1 425 R2 859 R1 907 R5 309
Source: BFAP, GSA, NWK and individual farmers – 2020.
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 872 -910 26 962 1 897 2 833 3 769 4 705
R1 972 -635 351 1 337 2 322 3 308 4 294 5 280
R2 072 -360 676 1 712 2 747 3 783 4 819 5 855
R2 172 -85 1 001 2 087 3 172 4 258 5 344 6 430
R2 272 190 1 326 2 462 3 597 4 733 5 869 7 005
R2 372 465 1 651 2 837 4 022 5 208 6 394 7 580
R2 472 740 1 976 3 212 4 447 5 683 6 919 8 155
R2 572 1 015 2 301 3 587 4 872 6 158 7 444 8 730
R2 672 1 290 2 626 3 962 5 297 6 633 7 969 9 305
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R5 354 -272 1 066 2 405 3 743 5 082 6 420 7 759
R5 454 -197 1 166 2 530 3 893 5 257 6 620 7 984
R5 554 -122 1 266 2 655 4 043 5 432 6 820 8 209
R5 654 -47 1 366 2 780 4 193 5 607 7 020 8 434
R5 754 28 1 466 2 905 4 343 5 782 7 220 8 659
R5 854 103 1 566 3 030 4 493 5 957 7 420 8 884
R5 954 178 1 666 3 155 4 643 6 132 7 620 9 109
R6 054 253 1 766 3 280 4 793 6 307 7 820 9 334
R6 154 328 1 866 2 405 4 943 6 482 8 020 9 559
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R5 254 2 013 3 326 4 639 5 690 7 266 8 580 9 893
R5 354 2 113 3 451 4 789 5 860 7 466 8 805 10 143
R5 454 2 213 3 576 4 939 6 030 7 666 9 030 10 393
R5 554 2 313 3 701 5 089 6 200 7 866 9 255 10 643
R5 654 2 413 3 826 5 239 6 370 8 066 9 480 10 893
R5 754 2 513 3 951 5 389 6 540 8 266 9 705 11 143
R5 854 2 613 4 076 5 539 6 710 8 466 9 930 11 393
R5 954 2 713 4 201 5 689 6 880 8 666 10 155 11 893
R6 054 2 813 4 326 5 839 7 050 8 866 10 380 11 893
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R8 475 -932 1 412 3 755 6 099 8 443 10 787 13 130
R8 575 -857 1 512 3 880 6 249 8 618 10 987 13 355
R8 675 -782 1 612 4 005 6 399 8 793 11 187 13 580
R8 775 -707 1 712 4 130 6 549 8 968 11 387 13 805
R8 875 -632 1 812 4 255 6 699 9 143 11 587 14 030
R8 975 -557 1 912 4 380 6 849 9 318 11 787 14 255
R9 075 -482 2 012 4 505 6 999 9 493 11 987 14 480
R9 175 -407 2 112 4 630 7 149 9 668 12 187 14 705
R9 275 -332 2 212 4 755 7 299 9 843 12 387 14 930
Soybeans margin above/below maize
Yield Price (R/ton)
R5 454 R5 554 R5 654 R5 754 R5 854 R5 954 R6 054
0.50 -5 158 -5 108 -5 058 -5 008 -4 958 -4 908 -4 858
0.75 -3 795 -3 720 -3 645 -3 570 -3 495 -3 420 -3 345
1.00 -2 431 -2 331 -2 231 -2 131 -2 031 -1 931 -1 831
1.25 -1 068 -943 -818 -693 -568 -443 -318
1.50 -296 446 596 746 896 1 046 1 196
1.75 1 659 1 834 2 009 2 184 2 359 2 534 2 709
2.00 3 023 3 223 3 423 3 623 3 823 4 023 4 223
2.25 4 387 4 612 4 837 5 062 5 287 5 512 5 737
2.50 5 750 6 000 6 250 6 500 6 750 7 000 7 250

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. Ground Nuts N:P:K – 15:15:15.
  • Other macro- and 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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