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

Limpopo (Loskop region) – irrigation

Income and cost budgets for maize and soybeans for Limpopo (Loskop)
Area Limpopo: Loskop
Crop Maize Soybeans
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153
Total deductions R/ton 338 189
– Transport differential R/ton 275 69
– Grade differential R/ton – –
– Handling and commission R/ton 63 63
– Seed breeding and technology levy R/ton – 57
Price premiums R/ton – –
Net farm gate price R/ton 2 708 6 964
Gross income R/ha R32 500 R27 854

2. Variable expenditures
Contracting R/ha 850 890
Crop insurance R/ha 1 105 1 532
Fertilizer R/ha 7 615 2 816
Lime R/ha 665 –
Seed R/ha 4 243 1 824
Fuel R/ha 1 254 1 074
Herbicide R/ha 1 035 586
Insecticide / Fungicides R/ha 742 339
Marketing costs R/ha – –
Repairs and maintenance R/ha 775 580
Casual labour R/ha 215 –
Aerial spray R/ha – –
Irrigation electricity R/ha 4 060 2 922
Water R/ha 1 369 985
Other expenditure: scheduling/irrigation equipment R&M R/ha 742 560
Total variable expenditure R/ha R24 670 R14 108
Total variable expenditure R/ton R2 056 R3 527
3.1 Gross margin R/ha R7 829 R13 746
3.2 Gross margin R/ton R652 R3 437
Break-even yield T/ha 9.11 2.03
Break-even price R/ton R2 056 R3 527
Source: BFAP, GSA and individual farmers – 2021.
Gross margin comparison – baseline: Limpopo (Loskop region)
Figure 3.4: Gross margin comparison – Baseline: Limpopo (Loskop) irrigation

Gross margin per hectare: Limpopo (Loskop area)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R2 308 -433 721 1 875 3 029 4 183 5 337 6 492
R2 408 617 1 821 3 025 4 229 5 433 6 637 7 842
R2 508 1 667 2 921 4 175 5 429 6 683 7 937 9 192
R2 608 2 717 4 021 5 325 6 629 7 933 9 237 10 542
R2 708 3 767 5 121 6 475 7 829 9 183 10 537 11 892
R2 808 4 817 6 221 7 625 9 029 10 433 11 837 13 242
R2 908 5 867 7 321 8 775 10 229 11 683 13 137 14 592
R3 008 6 917 8 421 9 925 11 429 12 933 14 437 15 942
R3 108 7 967 9 521 11 075 12 629 14 183 15 737 17 292
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R6 564 7 223 8 864 10 505 12 146 13 787 15 428 17 069
R6 664 7 548 9 214 10 880 12 546 14 212 15 878 17 544
R6 764 7 873 9 564 11 255 12 946 14 637 16 328 18 019
R6 864 8 198 9 914 11 630 13 346 15 062 16 778 18 494
R6 964 8 523 10 264 12 005 13 746 15 487 17 228 18 969
R7 064 8 848 10 614 12 380 14 146 15 912 17 678 19 444
R7 164 9 173 10 964 12 755 14 546 16 337 18 128 19 919
R7 264 9 498 11 314 13 130 14 946 16 762 18 578 20 394
R7 364 9 823 11 664 13 505 15 346 17 187 19 028 20 869
Soybeans margin above/below maize
Yield Price (R/ton)
R6 664 R6 764 R6 864 R6 964 R7 064 R7 164 R7 264
3.00 -1 947 -1 647 -1 347 -1 047 -747 -447 -147
3.25 -281 44 369 694 1 019 1 344 1 669
3.50 1 385 1 735 2 085 2 435 2 785 3 135 3 485
3.75 3 051 3 426 3 801 4 176 4 551 4 926 5 301
4.00 4 717 5 117 5 517 5 917 6 317 6 717 7 117
4.25 6 383 6 808 7 233 7 658 8 083 8 508 8 933
4.50 8 049 8 499 8 949 9 399 9 849 10 299 10 749
4.75 9 715 10 190 10 665 11 140 11 615 12 090 12 565
5.00 11 380 11 880 12 380 12 880 13 380 13 880 14 380

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 – 240:42:48. Soybeans N:P:K – 14:38:45.
  • 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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