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

Northern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower, groundnuts and grain sorghum for Western and Northern Free State
Area Western and Northern Free State
Crop Maize (higher potential) Maize (normal potential) Soybeans Sunflower Groundnuts Grain sorghum
Production system Dryland

1. Income
Yield: deterministic Ton/ha 5.50 4.50 1.75 1.75 1.50 3.00
SAFEX simulated price / producer price: 2022 R/ton 3 046 2 987 7 153 8 318 12 113 3 335
Total deductions R/ton 340 301 189 389 63 63
– Transport differential R/ton 277 238 69 240 – –
– Grade differential R/ton – – – – – –
– Handling and commission R/ton 63 63 63 93 63 63
– Seed breeding & technology levy R/ton – – 57 56 – –
Price premiums R/ton – – – – – –
Net farm gate price R/ton 2 706 2 686 6 964 7 929 12 050 3 272
Gross income R/ha R14 885 R12 088 R12 186 R13 876 R18 074 R9 815

2. Variable expenditures
Contracting R/ha – – – – – –
Crop insurance R/ha 164 133 597 249 283 314
Fertilizer R/ha 2 887 2 276 1 076 1 402 1 620 2 098
Lime R/ha 268 268 – – 148 156
Seed R/ha 1 435 1 079 819 519 1 743 351
Fuel R/ha 1 100 1 091 779 850 1 093 1 012
Herbicide R/ha 1 007 1 007 954 777 901 881
Insecticide / Fungicides R/ha 283 283 180 29 1 204 613
Marketing costs R/ha – – – – – –
Repairs and maintenance R/ha 798 790 714 586 719 778
Casual labour R/ha 220 225 – 188 564 192
Aerial spray R/ha – – – – – –
Other expenditure R/ha – – – – 302 –
Total variable expenditure R/ha R8 163 R7 152 R5 119 R4 601 R8 576 R6 395
Total variable expenditure R/ton R1 484 R1 589 R2 925 R2 629 R5 718 R2 132
3.1 Gross margin R/ha R6 722 R4 936 R7 067 R9 275 R9 498 R3 420
3.2 Gross margin R/ton R1 222 R1 097 R4 038 R5 300 R6 332 R1 140
Break-even yield T/ha 3.02 2.66 0.74 0.58 0.71 1.95
Break-even price R/ton R1 484 R1 589 R2 925 R2 629 R5 718 R2 132
Source: BFAP, GSA and Senwes – 2021.
Gross margin comparison – baseline: Northern Free State
Gross margin comparison - Baseline: Western / Northern Free State

Gross margin per hectare: Northern Free State

Maize sensitivity analysis (higher potential soils)
Yield (t/ha)
Producers price 4.00 4.50 5.00 5.50 6.00 6.50 7.00
R2 306 1 062 2 215 3 369 4 522 5 675 6 828 7 981
R2 406 1 462 2 665 3 869 5 072 6 275 7 478 8 681
R2 506 1 862 3 115 4 369 5 622 6 875 8 128 9 381
R2 606 2 262 3 565 4 869 6 172 7 475 8 778 10 081
R2 706 2 662 4 015 5 369 6 722 8 075 9 428 10 781
R2 806 3 062 4 465 5 869 7 272 8 675 10 078 11 481
R2 906 3 462 4 915 6 369 7 822 9 275 10 728 12 181
R3 006 3 862 5 365 6 869 8 372 9 875 11 378 12 881
R3 106 4 262 5 815 7 369 8 922 10 475 12 028 13 581
Soybeans sensitivity analysis (normal potential soils)
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R6 564 1 444 3 085 4 726 6 367 8 008 9 649 11 290
R6 664 1 544 3 210 4 876 6 542 8 208 9 874 11 540
R6 764 1 644 3 335 5 026 6 717 8 408 10 099 11 790
R6 864 1 744 3 460 5 176 6 892 8 608 10 324 12 040
R6 964 1 844 3 585 5 326 7 067 8 808 10 549 12 290
R7 064 1 944 3 710 5 476 7 242 9 008 10 774 12 540
R7 164 2 044 3 835 5 626 7 417 9 208 10 999 12 790
R7 264 2 144 3 960 5 776 7 592 9 408 11 224 13 040
R7 364 2 244 4 085 5 926 7 767 9 608 11 449 13 290
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R7 529 2 928 4 811 6 693 8 575 10 457 12 340 14 222
R7 629 3 028 4 936 6 843 8 750 10 657 12 565 14 472
R7 729 3 128 5 061 6 993 8 925 10 857 12 790 14 722
R7 829 3 228 5 186 7 143 9 100 11 057 13 015 14 972
R7 929 3 328 5 311 7 293 9 275 11 257 13 240 15 222
R8 029 3 428 5 436 7 443 9 450 11 457 13 465 15 472
R8 129 3 528 5 561 7 593 9 625 11 657 13 690 15 722
R8 229 3 628 5 686 7 743 9 800 11 857 13 915 15 972
R8 329 3 728 5 811 7 893 9 975 12 057 14 140 16 222
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R11 650 836 3 973 7 110 10 248 13 385 16 523 19 660
R11 750 911 4 073 7 235 10 398 13 560 16 723 19 885
R11 850 986 4 173 7 360 10 548 13 735 16 923 20 110
R11 950 1 061 4 273 7 485 10 698 13 910 17 123 20 335
R12 050 1 136 4 373 7 610 10 848 14 085 17 323 20 560
R12 150 1 211 4 473 7 735 10 998 14 260 17 523 20 785
R12 250 1 286 4 573 7 860 11 148 14 435 17 723 21 010
R12 350 1 361 4 673 7 985 11 298 14 610 17 923 21 235
R12 450 1 436 4 773 8 110 11 448 14 785 18 123 21 460
Soybeans margin above/below maize
Yield Price (R/ton)
R6 664 R6 764 R6 864 R6 964 R7 064 R7 164 R7 264
0.75 -6 843 -6 768 -6 693 -6 618 -6 543 -6 468 -6 393
1.00 -5 177 -5 077 -4 977 -4 877 -4 777 -4 677 -4 577
1.25 -3 511 -3 386 -3 261 -3 136 -3 011 -2 886 -2 761
1.50 -1 845 -1 695 -1 545 -1 395 -1 245 -1 095 -945
1.75 -180 -5 170 345 520 695 870
2.00 1 486 1 686 1 886 2 088 2 286 2 486 2 686
2.25 3 152 3 377 3 602 3 827 4 052 4 277 4 502
2.50 4 818 5 068 5 318 5 568 5 818 6 068 6 318
2.75 6 484 6 759 7 034 7 309 7 584 7 859 8 134

Notes

  • The Northern Free State high potential maize budget represents the cultivation of yellow maize under high potential conditions such as water table soils.
  • 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 (higher potential) N:P:K – 92:16:14. Maize (normal potential) N:P:K – 70:15:7. Soybeans N:P:K – 10:10:10. Sunflower N:P:K – 45:7:10. Ground Nuts N:P:K – 15:15:15. Grain Sorghum N:P:K – 69:14:8.
  • 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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