OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


WINTER CROPS  //  2020 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – low to normal potential regions)
Area Southern Cape: Eastern Rûens
(low-normal potential)
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.50 2.50 1.50 2.20 1.50
SAFEX simulated / derived price: 2020 R/ton 4 741 4 741 5 500 3 500 4 000
Total deductions R/ton 722 651 135 4 4
– Transport differential R/ton 610 610 130
– 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 5 915 3 497 3 996
Gross income R/ha R10 048 R10 078 R8 873 R7 692 R5 994

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 29 29 25 22
Fertilizer R/ha 1 411 1 387 1 408 1 129 588
Lime R/ha 135 135 135 135
Seed R/ha 465 376 784 455 1 003
Fuel R/ha 475 484 485 474 454
Herbicide R/ha 453 499 637 476 584
Insecticide R/ha 163 144 570 134 79
Fungicides R/ha 549 696 388 436 209
Marketing costs R/ha 45 56 14
Repairs and maintenance R/ha 573 573 616 573 573
Casual labour R/ha 18 17 13 17 17
Aerial spray R/ha
Other expenditure R/ha 111 113 106 95 95
Total variable expenditure R/ha R4 426 R4 509 R5 180 R3 944 R3 600
Total variable expenditure R/ton R1 770 R1 804 R3 453 R1 793 R2 400
3.1 Gross margin R/ha R5 622 R5 569 R3 693 R3 748 R2 394
3.2 Gross margin R/ton R2 249 R2 227 R2 462 R1 704 R1 596
Break-even yield T/ha 1.10 1.12 0.88 1.13 0.90
Break-even price R/ton R1 770 R1 804 R3 453 R1 793 R2 400
Source: SSK, GSA and BFAP, April 2020.
Gross margin comparison – Baseline: Southern Cape (Eastern Rûens – high potential)
Gross margin comparison – Baseline: Southern Cape (Eastern Rûens - low to normal potential region)

Gross margin per hectare: Southern Cape – Eastern Rûens (low to normal potential)

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 019 858 1 612 2 367 3 122 3 877 4 632 5 386
R3 269 1 295 2 112 2 930 3 747 4 564 5 382 6 199
R3 519 1 733 2 612 3 492 4 372 5 252 6 132 7 011
R3 769 2 170 3 112 4 055 4 997 5 939 6 882 7 824
R4 019 2 608 3 612 4 617 5 622 6 627 7 632 8 636
R4 269 3 045 4 112 5 180 6 247 7 314 8 382 9 449
R4 519 3 483 4 612 5 742 6 872 8 002 9 132 10 261
R4 769 3 920 5 112 6 305 7 497 8 689 9 882 11 074
R5 019 4 358 5 612 6 867 8 122 9 377 10 632 11 886
Barley sensitivity analysis
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R3 031 795 1 553 2 311 3 069 3 826 4 584 5 342
R3 281 1 233 2 053 2 873 3 694 4 514 5 334 6 154
R3 531 1 670 2 553 3 436 4 319 5 201 6 084 6 967
R3 781 2 108 3 053 3 998 4 944 5 889 6 834 7 779
R4 031 2 545 3 553 4 561 5 569 6 576 7 584 8 592
R4 281 2 983 4 053 5 123 6 194 7 264 8 334 9 404
R4 531 3 420 4 553 5 686 6 819 7 951 9 084 10 217
R4 781 3 858 5 053 6 248 8 069 8 639 9 834 11 029
R5 031 4 295 5 553 6 811 8 069 9 326 10 584 11 842
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 915 -1 494 -265 964 2 193 3 421 4 650 5 879
R5 165 -1 306 -15 1 276 2 568 3 859 5 150 6 442
R5 415 -1 119 235 1 589 2 943 4 296 5 650 7 004
R5 665 -931 485 1 901 3 318 4 734 6 150 7 567
R5 915 -744 735 2 214 3 693 5 171 6 650 8 129
R6 165 -556 985 2 526 4 068 5 609 7 150 8 692
R6 415 -369 1 235 2 839 4 443 6 046 7 650 9 254
R6 665 -181 1 485 3 151 4 818 6 484 8 150 9 817
R6 915 6 1 735 3 464 5 193 6 921 8 650 10 379
Canola margin above/below wheat
Yield Price (R/ton)
R5 165 R5 415 R5 665 R5 915 R6 165 R6 415 R6 665
0.50 -8 219 -8 094 -7 969 -7 844 -7 719 -7 594 -7 469
0.75 -6 928 -6 741 -6 553 -6 366 -6 178 -5 991 -5 803
1.00 -5 637 -5 387 -5 137 -4 887 -4 637 -4 387 -4 137
1.25 -4 346 -4 033 -3 721 -3 408 -3 096 -2 783 -2 471
1.50 -3 054 -2 679 -2 304 -1 929 -1 554 -1 179 -804
1.75 -1 763 -1 325 -888 -450 -13 425 862
2.00 -472 28 528 1 028 1 528 2 028 2 528
2.25 820 1 382 1 945 2 507 3 070 3 632 4 195
2.50 2 111 2 736 3 361 3 986 4 611 5 236 5 861

Notes

  • 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.
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