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	2.60	1.30
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	4
– Transport differential	R/ton	610	610	–	–	–
– Grade differential	R/ton	3	–	–	–	–
– Marketing, handling and statutory levies	R/ton	109	41	30	–	–
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	550	–	–
Net farm gate price	R/ton	4 019	4 031	7 020	3 497	3 997
Gross income	R/ha	R12 861	R12 899	R10 535	R9 091	R5 195
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	34	37	30	26	15
Fertilizer	R/ha	1 865	1 880	1 837	1 466	404
Lime	R/ha	156	156	156	131	131
Seed	R/ha	594	509	1 278	456	940
Fuel	R/ha	643	695	602	631	595
Herbicide	R/ha	635	727	777	356	590
Insecticide	R/ha	227	253	848	179	176
Fungicides	R/ha	719	993	471	647	537
Marketing costs	R/ha	58	72	17	–	–
Repairs and maintenance	R/ha	759	761	715	758	727
Casual labour	R/ha	7	7	7	13	13
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	115	120	110	93	93
Total variable expenditure	R/ha	R5 812	R6 209	R6 847	R4 756	R4 221
Total variable expenditure	R/ton	R1 816	R1 940	R3 912	R1 829	R3 247
3.1 Gross margin	R/ha	R7 049	R6 690	R3 688	R4 335	R975
3.2 Gross margin	R/ton	R2 203	R2 091	R2 108	R1 667	R750
Break-even yield	T/ha	1.45	1.54	1.14	1.36	1.06
Break-even price	R/ton	R1 816	R1 940	R3 912	R1 829	R3 247

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

Gross margin per hectare: Southern Cape – Overberg, Caledon

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.