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

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 6.50 2.50 4.50 6.00 2.00
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153 3 335 3 046 7 153
Total deductions R/ton 312 183 63 360 195
– Transport differential R/ton 252 63 – 300 75
– Grade differential R/ton – – – – –
– Handling and commission R/ton 60 63 63 60 63
– Seed breeding and technology levy R/ton – 57 – – 57
Price premiums R/ton – – – – –
Net farm gate price R/ton 2 734 6 970 3 272 2 686 6 958
Gross income R/ha R17 773 R17 424 R14 723 R16 118 R13 915

2. Variable expenditures
Contracting R/ha – – – – –
Crop insurance R/ha 675 1 429 442 612 1 141
Fertilizer R/ha 3 965 1 557 2 271 3 786 1 443
Lime R/ha 576 – 576 576 –
Seed R/ha 2 728 1 069 702 2 425 980
Fuel R/ha 1 176 627 967 1 001 607
Herbicide R/ha 1 376 1 204 1 039 1 376 1 204
Insecticide / Fungicides R/ha 873 366 676 873 366
Marketing costs R/ha – – – – –
Repairs and maintenance R/ha 750 443 685 706 440
Casual labour R/ha 228 – 192 210 –
Aerial spray R/ha – – – – –
Other expenditure R/ha – – – – –
Total variable expenditure R/ha R12 347 R6 694 R7 551 R11 566 R6 180
Total variable expenditure R/ton R1 899 R2 678 R1 678 R1 928 R3 090
3.1 Gross margin R/ha R5 426 R10 729 R7 172 R4 552 R7 735
3.2 Gross margin R/ton R835 R4 292 R1 594 R759 R3 868
Break-even yield T/ha 4.52 0.96 2.31 4.31 0.89
Break-even price R/ton R1 899 R2 678 R1 678 R1 928 R3 090
Source: BFAP, GSA and individual farmers – 2021.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison - Baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Maize sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 5.00 5.50 6.00 6.50 7.00 7.50 8.00
R2 334 -675 492 1 659 2 826 3 993 5 161 6 328
R2 434 -175 1 042 2 259 3 476 4 693 5 911 7 128
R2 534 325 1 592 2 859 4 126 5 393 6 661 7 928
R2 634 825 2 142 3 459 4 776 6 093 7 411 8 728
R2 734 1 325 2 692 4 059 5 426 6 793 8 161 9 528
R2 834 1 825 3 242 4 659 6 076 7 493 8 911 10 328
R2 934 2 325 3 792 5 259 6 726 8 193 9 661 11 128
R3 034 2 825 4 342 5 859 7 376 8 893 10 411 11 928
R3 134 3 325 4 892 6 459 8 026 9 593 11 161 12 728
Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R6 570 4 802 6 445 8 087 9 729 11 372 13 014 14 657
R6 670 4 977 6 645 8 312 9 979 11 647 13 314 14 982
R6 770 5 152 6 845 8 537 10 229 11 922 13 614 15 307
R6 870 5 327 7 045 8 762 10 479 12 197 13 914 15 632
R6 970 5 502 7 245 8 987 10 729 12 472 14 214 15 957
R7 070 5 677 7 445 9 212 10 979 12 747 14 514 16 282
R7 170 5 852 7 645 9 437 11 229 13 022 14 814 16 607
R7 270 6 027 7 845 9 662 11 479 13 297 15 114 16 932
R7 370 6 202 8 045 9 887 11 729 13 572 15 414 17 257
Maize sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 4.50 5.00 5.50 6.00 6.50 7.00 7.50
R2 286 -1 277 -134 1 009 2 152 3 295 4 438 5 582
R2 386 -827 366 1 559 2 752 3 945 5 138 6 332
R2 486 -377 866 2 109 3 352 4 595 5 838 7 082
R2 586 73 1 366 2 659 3 952 5 245 6 538 7 832
R2 686 523 1 866 3 209 4 552 5 895 7 238 8 582
R2 786 973 2 366 3 759 5 152 6 545 7 938 9 332
R2 886 1 423 2 866 4 309 5 752 7 195 8 638 10 082
R2 986 1 873 3 366 4 859 6 352 7 845 9 338 10 832
R3 086 2 323 3 866 5 409 6 952 8 495 10 038 11 582
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R6 558 2 017 3 656 5 296 6 935 8 575 10 214 11 853
R6 658 2 142 3 806 5 471 7 135 8 800 10 464 12 128
R6 758 2 267 3 956 5 646 7 335 9 025 10 714 12 403
R6 858 2 392 4 106 5 821 7 535 9 250 10 964 12 678
R6 958 2 517 4 256 5 996 7 735 9 475 11 214 12 953
R7 058 2 642 4 406 6 171 7 935 9 700 11 464 13 228
R7 158 2 767 4 556 6 346 8 135 9 925 11 714 13 503
R7 258 2 892 4 706 6 521 8 335 10 150 11 964 13 778
R7 358 3 017 4 856 6 696 8 535 10 375 12 214 14 053
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R6 670 R6 770 R6 870 R6 970 R7 070 R7 170 R7 270
1.50 -2 116 -1 966 -1 816 -1 666 -1 516 -1 366 -1 216
1.75 -449 -274 -99 76 251 426 601
2.00 1 218 1 418 1 618 1 818 2 018 2 218 2 418
2.25 2 886 3 111 3 336 3 561 3 786 4 011 4 236
2.50 4 553 4 803 5 053 5 303 5 553 5 803 6 053
2.75 6 220 6 495 6 770 7 045 7 320 7 595 7 870
3.00 7 888 8 188 8 488 8 788 9 088 9 388 9 688
3.25 9 555 9 880 10 205 10 530 10 855 11 180 11 505
3.50 11 223 11 573 11 923 12 273 12 623 12 973 13 323
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R6 658 R6 758 R6 858 R6 958 R7 058 R7 158 R7 258
1.00 -4 074 -3 974 -3 874 -3 774 -3 674 -3 574 -3 474
1.25 -2 410 -2 285 -2 160 -2 035 -1 910 -1 785 -1 660
1.50 -746 -596 -446 -296 -146 4 154
1.75 919 1 094 1 269 1 444 1 619 1 794 1 969
2.00 2 583 2 783 2 983 3 183 3 383 3 583 3 783
2.25 4 247 4 472 4 697 4 922 5 147 5 372 5 597
2.50 5 912 6 162 6 412 6 662 6 912 7 162 7 412
2.75 7 576 7 851 8 126 8 401 8 676 8 951 9 226
3.00 9 241 9 541 9 841 10 141 10 441 10 741 11 041

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 (Middelburg/Trichard) N:P:K – 120:21:30. Soybeans (Middelburg/Trichard) N:P:K – 10:14:20. Grain sorghum N:P:K – 85:10:11. Maize (Ermelo) N:P:K – 111:21:30. Soybeans (Ermelo) N:P:K – 10:12:18.
  • 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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