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

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 3.80 3.00 7.00
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153 8 318 3 335
Total deductions R/ton 206 156 269 63
– Transport differential R/ton 143 36 176 –
– Grade differential R/ton – – – –
– Handling and commission R/ton 63 63 93 63
– Seed breeding and technology levy R/ton – 57 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 2 840 6 997 8 049 3 272
Gross income R/ha R34 084 R26 587 R24 147 R22 902

2. Variable expenditures
Contracting R/ha 850 890 – –
Crop insurance R/ha 1 159 1 462 580 583
Fertilizer R/ha 7 615 2 605 2 342 4 677
Lime R/ha 523 – – 340
Seed R/ha 4 243 1 824 890 754
Fuel R/ha 1 254 1 074 1 063 1 125
Herbicide R/ha 1 035 586 849 1 167
Insecticide / Fungicides R/ha 742 339 194 606
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 654 570 544 561
Casual labour R/ha 215 – – 158
Aerial spray R/ha – – – 230
Irrigation electricity R/ha 3 383 2 768 1 538 2 153
Water R/ha 1 141 933 519 726
Other expenditure: scheduling/irrigation equipment R&M R/ha 634 536 340 438
Total variable expenditure R/ha R23 448 R13 587 R8 860 R13 517
Total variable expenditure R/ton R1 954 R3 576 R2 953 R1 931
3.1 Gross margin R/ha R10 635 R13 000 R15 287 R9 385
3.2 Gross margin R/ton R886 R3 421 R5 096 R1 341
Break-even yield T/ha 8.26 1.94 1.10 4.13
Break-even price R/ton R1 954 R3 576 R2 953 R1 931
Source: BFAP, GSA, NWK and individual farmers – 2021.
Gross margin comparison – baseline: North West (Brits)
Figure 3.3: Gross margin comparison – Baseline: North West (Brits region) irrigation

Gross margin per hectare: North West (Brits)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R2 440 2 175 3 395 4 615 5 835 7 055 8 276 9 496
R2 540 3 225 4 495 5 765 7 035 8 305 9 576 10 846
R2 640 4 275 5 595 6 915 8 235 9 555 10 876 12 196
R2 740 5 325 6 695 8 065 9 435 10 805 12 176 13 546
R2 840 6 375 7 795 9 215 10 635 12 055 13 476 14 896
R2 940 7 425 8 895 10 365 11 835 13 305 14 776 16 246
R3 040 8 475 9 995 11 515 13 035 14 555 16 076 17 596
R3 140 9 525 11 095 12 665 14 235 15 805 17 376 18 946
R3 240 10 575 12 195 13 815 15 435 17 055 18 676 20 296
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R6 597 6 202 7 852 9 501 11 480 12 799 14 448 16 097
R6 697 6 502 8 177 9 851 11 860 13 199 14 873 16 547
R6 797 6 802 8 502 10 201 12 240 13 599 15 298 16 997
R6 897 7 102 8 827 10 551 12 620 13 999 15 723 17 447
R6 997 7 402 9 152 10 901 13 000 14 399 16 148 17 897
R7 097 7 702 9 477 11 251 13 380 14 799 16 573 18 347
R7 197 8 002 9 802 11 601 13 760 15 199 16 998 18 797
R7 297 8 302 10 127 11 951 14 140 15 599 17 423 19 247
R7 397 8 602 10 452 12 301 14 520 15 999 17 848 19 697
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.30 2.55 2.80 3.00 3.30 3.55 3.80
R7 649 8 732 10 645 12 557 14 087 16 381 18 294 20 206
R7 749 8 962 10 900 12 837 14 387 16 711 18 649 20 586
R7 849 9 192 11 155 13 117 14 687 17 041 19 004 20 966
R7 949 9 422 11 410 13 397 14 987 17 371 19 359 21 346
R8 049 9 652 11 665 13 677 15 287 17 701 19 714 21 726
R8 149 9 882 11 920 13 957 15 587 18 031 20 069 22 106
R8 249 10 112 12 175 14 237 15 887 18 361 20 424 22 486
R8 349 10 342 12 430 14 517 16 187 18 691 20 779 22 866
R8 449 10 572 12 685 14 797 16 487 19 021 21 134 23 246
Soybeans margin above/below maize
Yield Price (R/ton)
R6 697 R6 797 R6 897 R6 997 R7 097 R7 197 R7 297
2.75 -5 807 -5 532 -5 257 -4 982 -4 707 -4 432 -4 157
3.00 -4 133 -3 833 -3 533 -3 233 -2 933 -2 633 -2 333
3.25 -2 459 -2 134 -1 809 -1 484 -1 159 -834 -509
3.50 -785 -435 -85 265 615 965 1 315
3.80 1 224 1 604 1 984 2 364 2 744 3 124 3 504
4.00 2 564 2 964 3 364 3 764 4 164 4 564 4 964
4.25 4 238 4 663 5 088 5 513 5 938 6 363 6 788
4.50 5 912 6 362 6 812 7 262 7 712 8 162 8 612
4.75 7 586 8 061 8 536 9 011 9 486 9 961 10 436

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 – 14:36:42. Sunflower N:P:K – 60:15:24. Grain sorghum N:P:K – 140:25:28.
  • 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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