Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – high potential regions)

Area		Southern Cape: Eastern Rûens (high potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	1.75	2.50	1.80
SAFEX simulated / derived price: 2020	R/ton	4 741	4 741	5 500	3 500	4 000
Total deductions	R/ton	722	651	5	4	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	6 045	3 497	3 996
Gross income	R/ha	R12 058	R12 093	R10 579	R8 741	R7 193
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	35	35	30	25	–
Fertilizer	R/ha	1 707	1 653	1 729	1 454	675
Lime	R/ha	135	135	135	135	–
Seed	R/ha	542	451	852	500	1 170
Fuel	R/ha	475	484	485	474	454
Herbicide	R/ha	1 136	859	970	602	710
Insecticide	R/ha	163	178	613	163	79
Fungicides	R/ha	549	1 035	388	591	209
Marketing costs	R/ha	54	68	17	–	–
Repairs and maintenance	R/ha	607	641	616	607	573
Casual labour	R/ha	18	19	13	18	17
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	111	113	106	95	95
Total variable expenditure	R/ha	R5 531	R5 671	R5 952	R4 663	R3 980
Total variable expenditure	R/ton	R1 844	R1 890	R3 401	R1 865	R2 211
3.1 Gross margin	R/ha	R6 527	R6 422	R4 627	R4 079	R3 213
3.2 Gross margin	R/ton	R2 176	R2 141	R2 644	R1 631	R1 785
Break-even yield	T/ha	1.38	1.41	0.98	1.33	1.00
Break-even price	R/ton	R1 844	R1 890	R3 401	R1 865	R2 211

Source: SSK, GSA and BFAP, April 2020.

Gross margin per hectare: Southern Cape – Eastern Rûens (high potential)

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.