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 (Koster) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Koster region
Area North West: Koster
Crop Maize Soybeans Sunflower
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.75 2.00 2.00
SAFEX simulated price / producer price: 2022 R/ton 2 987 7 153 8 318
Total deductions R/ton 230 162 278
– Transport differential R/ton 167 42 185
– Grade differential R/ton – – –
– Handling and commission R/ton 63 63 –
– Seed breeding and technology levy R/ton – 57 93
Price premiums R/ton – – –
Net farm gate price R/ton 2 757 6 991 8 040
Gross income R/ha R13 097 R13 981 R16 080

2. Variable expenditures
Contracting R/ha – – –
Crop insurance R/ha 276 1 565 467
Fertilizer R/ha 2 636 1 090 1 506
Lime R/ha 314 – –
Seed R/ha 1 030 641 519
Fuel R/ha 1 004 824 818
Herbicide R/ha 912 586 568
Insecticide / Fungicides R/ha 283 180 29
Marketing costs R/ha – – –
Repairs and maintenance R/ha 714 596 629
Casual labour R/ha 190 – 188
Aerial spray R/ha – – –
Other expenditure R/ha – – –
Total variable expenditure R/ha R7 359 R5 482 R4 725
Total variable expenditure R/ton R1 549 R2 741 R2 362
3.1 Gross margin R/ha R5 738 R8 499 R11 355
3.2 Gross margin R/ton R1 208 R4 250 R5 677
Break-even yield T/ha 2.67 0.78 0.59
Break-even price R/ton R1 549 R2 741 R2 362
Source: BFAP, GSA, NWK and individual farmers – 2021.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Koster)

Maize sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.75 4.25 4.75 5.25 5.75 6.25
R2 357 302 1 480 2 659 3 838 5 016 6 195 7 374
R2 457 627 1 855 3 084 4 313 5 541 6 770 7 999
R2 557 952 2 230 3 509 4 788 6 066 7 345 8 624
R2 657 1 277 2 605 3 934 5 263 6 591 7 920 9 249
R2 757 1 602 2 980 4 359 5 738 7 116 8 495 9 874
R2 857 1 927 3 355 4 784 6 213 7 641 9 070 10 499
R2 957 2 252 3 730 5 209 6 688 8 166 9 645 11 124
R3 057 2 577 4 105 5 634 7 163 8 691 10 220 11 749
R3 157 2 902 4 480 6 059 7 638 9 216 10 795 12 374
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R6 591 2 756 4 404 6 052 7 699 9 347 10 995 12 642
R6 691 2 881 4 554 6 227 7 899 9 572 11 245 12 917
R6 791 3 006 4 704 6 402 8 099 9 797 11 495 13 192
R6 891 3 131 4 854 6 577 8 299 10 022 11 745 13 467
R6 991 3 256 5 004 6 752 8 499 10 247 11 995 13 742
R5 500 1 393 2 768 4 143 5 518 6 893 8 268 9 643
R5 750 1 706 3 143 4 581 6 018 7 456 8 893 10 331
R6 000 2 018 3 518 5 018 6 518 8 018 9 518 11 018
R6 250 2 331 3 893 5 456 7 018 8 581 10 143 11 706
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R7 640 4 825 6 735 8 645 10 555 12 465 14 375 16 285
R7 740 4 950 6 885 8 820 10 755 12 690 14 624 16 560
R7 840 5 057 7 035 8 995 10 955 12 915 14 875 16 835
R7 940 5 200 7 185 9 170 11 155 13 140 15 125 17 110
R8 040 5 325 7 335 9 345 11 355 13 365 15 375 17 385
R5 250 1 838 3 150 4 463 5 775 7 088 8 400 9 713
R5 500 2 150 3 525 4 900 6 275 7 650 9 025 10 400
R5 750 2 463 3 900 5 338 6 775 8 213 9 650 11 088
R6 000 2 775 4 275 5 775 7 275 8 775 10 275 11 775
Soybeans margin above/below maize
Yield Price (R/ton)
R6 691 R6 791 R6 891 R6 991 R7 091 R7 191 R7 291
0.50 -7 874 -7 824 -7 774 -7 724 -7 674 -7 624 -7 574
0.75 -6 202 -6 127 -6 052 -5 977 -5 902 -5 827 -5 752
1.00 -4 529 -4 429 -4 329 -4 229 -4 129 -4 029 -3 929
1.25 -2 856 -2 731 -2 606 -2 481 -2 356 -2 231 -2 106
2.00 2 162 2 362 2 562 2 762 2 962 3 162 3 362
1.75 489 664 839 1 014 1 189 1 364 1 539
2.00 2 162 2 362 2 562 2 762 2 962 3 162 3 362
2.25 3 834 4 059 4 284 4 509 4 734 4 959 5 184
2.50 5 507 5 757 6 007 6 257 6 507 6 757 7 007

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 – 81:18:8. Soybeans N:P:K – 10:15:8. Sunflower N:P:K – 54:9:0.
  • 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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