OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


2021/2022 SUMMER CROPS  //  Income and Cost Budgets

Eastern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower and dry beans for Eastern Free State
Crop Maize Soybeans Sunflower Dry beans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 5.50 2.00 1.80 1.50
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153 8 318 15 500
Total deductions R/ton 379 199 333 480
– Transport differential R/ton 319 79 237
– Grade differential R/ton
– Handling and commission R/ton 60 63 96 480
– Seed breeding and technology levy R/ton 57
Price premiums R/ton
Net farm gate price R/ton 2 667 6 954 7 985 15 020
Gross income R/ha R14 670 R13 907 R14 373 R22 530

2. Variable expenditures

Contracting R/ha 1 268
Crop insurance R/ha 528 1 558 618 2 185
Fertilizer R/ha 3 076 1 296 1 257 1 893
Lime R/ha 538 457
Seed R/ha 1 697 1 069 687 3 456
Fuel R/ha 1 062 839 803 735
Herbicide R/ha 1 007 954 902 1 007
Insecticide / Fungicides R/ha 491 180 29 755
Marketing costs R/ha
Repairs and maintenance R/ha 836 693 741 569
Casual labour R/ha 220 188 1 800
Aerial spray R/ha
Other expenditure R/ha 120
Total variable expenditure R/ha R9 456 R6 588 R5 226 R14 245
Total variable expenditure R/ton R1 719 R3 294 R2 903 R9 497
3.1 Gross margin R/ha R5 214 R7 319 R9 147 R8 285
3.2 Gross margin R/ton R948 R3 660 R5 081 R5 523
Break-even yield T/ha 3.55 0.95 0.65 0.95
Break-even price R/ton R1 719 R3 294 R2 903 R9 497
Source: BFAP, GSA, VKB and individual farmers – 2021.
Gross margin comparison – baseline: Eastern Free State
Figure 2.3: Gross margin comparison – Baseline: Eastern Free State

Gross margin per hectare: Eastern Free State

Maize sensitivity analysis
Yield (t/ha)
Producers price 4.00 4.50 5.00 5.50 6.00 6.50 7.00
R2 267 -387 747 1 881 3 014 4 148 5 282 6 415
R2 367 13 1 197 2 381 3 564 4 748 5 932 7 115
R2 467 413 1 647 2 881 4 114 5 348 6 582 7 815
R2 567 813 2 097 3 381 4 664 5 948 7 232 8 515
R2 667 1 213 2 547 3 881 5 214 6 548 7 882 9 215
R2 767 1 613 2 997 4 381 5 764 7 148 8 532 9 915
R2 867 2 013 3 447 4 881 6 314 7 748 9 182 10 615
R2 967 2 413 3 897 5 381 6 864 8 348 9 832 11 315
R3 067 2 813 4 347 5 881 7 414 8 948 10 482 12 015
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R6 554 1 604 3 243 4 881 6 519 8 158 9 796 11 434
R6 654 1 729 3 393 5 056 6 719 8 383 10 046 11 709
R6 754 1 854 3 543 5 231 6 919 8 608 10 296 11 984
R6 854 1 979 3 693 5 406 7 119 8 833 10 546 12 259
R6 954 2 104 3 843 5 581 7 319 9 058 10 796 12 534
R7 054 2 229 3 993 5 756 7 519 9 283 11 046 12 809
R7 154 2 354 4 143 5 931 7 719 9 508 11 296 13 084
R7 254 2 479 4 293 6 106 7 919 9 733 11 546 13 359
R7 354 2 604 4 443 6 281 8 119 9 958 11 796 13 634
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.80 2.00 2.25 2.50
R7 585 2 359 4 255 6 151 8 427 9 944 11 840 13 736
R7 685 2 459 4 380 6 301 8 607 10 144 12 065 13 986
R7 785 2 559 4 505 6 451 8 787 10 344 12 290 14 236
R7 885 2 659 4 630 6 601 8 967 10 544 12 515 14 486
R7 985 2 759 4 755 6 751 9 147 10 744 12 740 14 736
R8 085 2 859 4 880 6 901 9 327 10 944 12 965 14 986
R8 185 2 959 5 005 7 051 9 507 11 144 13 190 15 236
R8 285 3 059 5 130 7 201 9 687 11 344 13 415 15 486
R8 385 3 159 5 255 7 351 9 867 11 544 13 640 15 736
Soybeans margin above/below maize
Yield Price (R/ton)
R6 654 R6 754 R6 854 R6 954 R7 054 R7 154 R7 254
1.00 -5 149 -5 049 -4 949 -4 849 -4 749 -4 649 -4 549
1.25 -3 485 -3 360 -3 235 -3 110 -2 985 -2 860 -2 735
1.50 -1 822 -1 672 -1 522 -1 372 -1 222 -1 072 -922
1.75 -158 17 192 367 542 717 892
2.00 1 505 1 705 1 905 2 105 2 305 2 505 2 705
2.25 3 168 3 393 3 618 3 843 4 068 4 293 4 518
2.50 4 832 5 082 5 332 5 582 5 832 6 082 6 332
2.75 6 495 6 770 7 045 7 320 7 595 7 870 8 145
3.00 8 158 8 458 8 758 9 058 9 358 9 658 9 958

Notes

  • 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 – 83:26:13. Soybeans N:P:K – 10:15:20. Sunflower N:P:K – 35:8:8. Dry beans N:P:K – 40:15:20.
  • 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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