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 (Lichtenburg) – dryland

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

1. Income
Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price / producer price: 2022 R/ton 2 987 7 153 8 318 12 113
Total deductions R/ton 291 177 328 63
– Transport differential R/ton 228 57 232 –
– Grade differential R/ton – – – –
– Handling and commission R/ton 63 63 96 63
– Seed breeding and technology levy R/ton – 57 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 2 696 6 976 7 990 12 050
Gross income R/ha R11 459 R10 463 R13 583 R18 074

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 172 1 171 381 289
Fertilizer R/ha 2 376 1 041 1 236 1 615
Lime R/ha 314 – – 173
Seed R/ha 932 641 519 1 743
Fuel R/ha 990 791 805 1 153
Herbicide R/ha 912 586 568 901
Insecticide / Fungicides R/ha 283 180 29 1 204
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 716 556 615 738
Casual labour R/ha 213 – 188 564
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 302
Total variable expenditure R/ha R6 908 R4 967 R4 341 R8 682
Total variable expenditure R/ton R1 625 R3 312 R2 554 R5 788
3.1 Gross margin R/ha R4 551 R5 496 R9 241 R9 392
3.2 Gross margin R/ton R1 071 R3 664 R5 436 R6 262
Break-even yield T/ha 2.56 0.71 0.54 0.72
Break-even price R/ton R1 625 R3 312 R2 554 R5 788
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 (Lichtenburg)

Maize sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.25 3.75 4.25 4.75 5.25 5.75
R2 296 -593 555 1 703 2 851 3 999 5 147 6 296
R2 396 -318 880 2 078 3 276 4 474 5 672 6 871
R2 496 -43 1 205 2 453 3 701 4 949 6 197 7 446
R2 596 232 1 530 2 828 4 126 5 424 6 722 8 021
R2 696 507 1 855 3 203 4 551 5 899 7 247 8 596
R2 796 782 2 180 3 578 4 976 6 374 7 772 9 171
R2 896 1 057 2 505 3 953 5 401 6 849 8 297 9 746
R2 996 1 332 2 830 4 328 5 826 7 324 8 822 10 321
R3 096 1 607 3 155 4 703 6 251 7 799 9 347 10 896
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R6 576 -36 1 608 3 252 4 896 6 540 8 184 9 828
R6 676 39 1 708 3 377 5 046 6 715 8 384 10 053
R6 776 114 1 808 3 502 5 196 6 890 8 584 10 278
R6 876 189 1 908 3 627 5 346 7 065 8 784 10 503
R6 976 264 2 008 3 752 5 496 7 240 8 984 10 728
R7 076 339 2 108 3 877 5 646 7 415 9 184 10 953
R7 176 414 2 208 4 002 5 796 7 590 9 384 11 178
R7 276 489 2 308 4 127 5 946 7 765 9 584 11 403
R7 376 564 2 408 4 252 6 096 7 940 9 784 11 628
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R7 590 3 248 5 146 7 043 8 561 10 838 12 736 14 633
R7 690 3 348 5 271 7 193 8 731 11 038 12 961 14 883
R7 790 3 448 5 396 7 343 8 901 11 238 13 186 15 133
R7 890 3 548 5 521 7 493 9 071 11 438 13 411 15 383
R7 990 3 648 5 646 7 643 9 241 11 638 13 636 15 633
R8 090 3 748 5 771 7 793 9 411 11 838 13 861 15 883
R8 190 3 848 5 896 7 943 9 581 12 038 14 086 16 133
R8 290 3 948 6 021 8 093 9 751 12 238 14 311 16 383
R8 390 4 048 6 146 8 243 9 921 12 438 14 536 16 633
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R11 650 730 3 868 7 005 10 142 13 280 16 417 19 555
R11 750 805 3 968 7 130 10 292 13 455 16 617 19 780
R11 850 880 4 068 7 255 10 442 13 630 16 817 20 005
R11 950 955 4 168 7 380 10 592 13 805 17 017 20 230
R12 050 1 030 4 268 7 505 10 742 13 980 17 217 20 455
R12 150 1 105 4 368 7 630 10 892 14 155 17 417 20 680
R12 250 1 180 4 468 7 755 11 042 14 330 17 617 20 905
R12 350 1 255 4 568 7 880 11 192 14 505 17 817 21 130
R12 450 1 330 4 668 8 005 11 342 14 680 18 017 21 355
Soybeans margin above/below maize
Yield Price (R/ton)
R6 676 R6 776 R6 876 R6 976 R7 076 R7 176 R7 276
0.50 -6 181 -6 131 -6 081 -6 031 -5 981 -5 931 -5 881
0.75 -4 512 -4 437 -4 362 -4 287 -4 212 -4 137 -4 062
1.00 -2 843 -2 743 -2 643 -2 543 -2 443 -2 343 -2 243
1.25 -1 174 -1 049 -924 -799 -674 -549 -424
1.50 495 645 795 945 1 095 1 245 1 395
1.75 2 164 2 339 2 514 2 689 2 864 3 039 3 214
2.00 3 832 4 032 4 232 4 432 4 632 4 832 5 032
2.25 5 501 5 726 5 951 6 176 6 401 6 626 6 851
2.50 7 170 7 420 7 670 7 920 8 170 8 420 8 670

Notes

  • Farm gate price for ground nuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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 – 72:16:8. Soybeans N:P:K – 10:12:8. Sunflower N:P:K – 40:9:0. Ground Nuts N:P:K – 15:15:15.
  • 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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