Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – low potential regions)

Area		Southern Cape: Eastern Rûens (low potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.20	2.20	1.20	1.50	1.40
SAFEX simulated / derived price: 2021	R/ton	4 955	4 955	6 700	4 955	4 450
Total deductions	R/ton	712	641	135	865	104
– Transport differential	R/ton	600	600	130	825	100
– Grade differential	R/ton	3	–	–	–	–
– Marketing, handling and statutory levies	R/ton	109	41	5	40	4
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	–	670	–	–
Net farm gate price	R/ton	4 243	4 249	7 235	4 091	4 246
Gross income	R/ha	R9 335	R9 347	R8 682	R6 136	R6 085
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	27	27	25	18	–
Fertilizer	R/ha	1 540	1 498	1 601	1 212	590
Lime	R/ha	226	226	226	226	–
Seed	R/ha	463	362	872	460	795
Fuel	R/ha	494	503	503	492	472
Herbicide	R/ha	684	680	1 113	647	745
Insecticide	R/ha	116	101	493	132	149
Fungicides	R/ha	598	720	637	394	262
Marketing costs	R/ha	47	65	21	22	–
Repairs and maintenance	R/ha	501	501	525	481	573
Casual labour	R/ha	14	14	12	12	16
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	121	122	115	107	96
Total variable expenditure	R/ha	R4 831	R4 820	R6 144	R4 203	R3 696
Total variable expenditure	R/ton	R2 196	R2 191	R5 120	R2 802	R2 640
3.1 Gross margin	R/ha	R4 505	R4 527	R2 538	R1 933	R2 388
3.2 Gross margin	R/ton	R2 048	R2 058	R2 115	R1 289	R1 706
Break-even yield	T/ha	1.14	1.13	0.85	1.03	0.85
Break-even price	R/ton	R2 196	R2 191	R5 120	R2 802	R2 640

Source: SSK, GSA and BFAP, April 2021.

Gross margin per hectare: Southern Cape – Eastern Rûens (low potential)

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.
The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
The costs for wheat, barley and oats seeds reflect a combination of own and purchased seed.
It is important to note that overhead costs are not included and should be accounted for. Overhead costs such as interest on production loans, labour, management and administration will vary to a large extent from producer to producer. Producers will therefore have to deduct the farm business' overhead cost from the gross margins as stipulated in the tables and figures to calculate the net income per crop.