Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Bredasdorp region)

Area		Southern Cape: Bredasdorp
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	1.60	2.40	1.20
SAFEX simulated / derived price: 2020	R/ton	4 741	4 741	5 500	3 500	4 000
Total deductions	R/ton	722	651	30	4	–
– Transport differential	R/ton	610	610	–	–	–
– Grade differential	R/ton	3	–	–	–	–
– Marketing, handling and statutory levies	R/ton	109	41	5	4	4
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	550	–	–
Net farm gate price	R/ton	4 019	4 031	6 020	3 497	3 997
Gross income	R/ha	R12 058	R12 093	R9 632	R8 392	R4 796
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	35	35	28	24	14
Fertilizer	R/ha	1 738	1 653	1 809	1 347	817
Lime	R/ha	156	156	156	131	131
Seed	R/ha	605	470	1 278	456	752
Fuel	R/ha	668	722	688	631	711
Herbicide	R/ha	807	701	758	606	515
Insecticide	R/ha	260	272	623	102	150
Fungicides	R/ha	685	1 075	411	465	199
Marketing costs	R/ha	54	68	15	–	–
Repairs and maintenance	R/ha	657	679	571	645	621
Casual labour	R/ha	7	7	7	7	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	111	113	106	95	95
Total variable expenditure	R/ha	R5 782	R5 950	R6 448	R4 508	R4 011
Total variable expenditure	R/ton	R1 927	R1 983	R4 030	R1 878	R3 343
3.1 Gross margin	R/ha	R6 275	R6 144	R3 184	R3 884	R785
3.2 Gross margin	R/ton	R2 092	R2 048	R1 990	R1 618	R654
Break-even yield	T/ha	1.44	1.48	1.07	1.29	1.00
Break-even price	R/ton	R1 927	R1 983	R4 030	R1 878	R3 343

Source: Overberg Agri, GSA and BFAP, April 2020.

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
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 producers to allocate them individually.
The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
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.