OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


WINTER CROPS  //  2021 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.75
SAFEX simulated / derived price: 2021 R/ton 4 955 6 700
Total deductions R/ton 717 30
– Transport differential R/ton 600
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 114 30
Price premiums / Canola back-payment (10% of contracted price) R/ton 670
Net farm gate price R/ton 4 238 7 340
Gross income R/ha R13 985 R12 845

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 37 37
Fertilizer R/ha 2 674 2 469
Lime R/ha 181 181
Seed R/ha 713 911
Fuel R/ha 499 382
Herbicide R/ha 1 067 663
Insecticide R/ha 119 176
Fungicides R/ha 831 436
Marketing costs R/ha 62 17
Repairs and maintenance R/ha 728 697
Casual labour R/ha
Aerial spray R/ha
Other expenditure R/ha 94 94
Total variable expenditure R/ha R7 003 R6 063
Total variable expenditure R/ton R2 122 R3 465
3.1 Gross margin R/ha R6 982 R6 782
3.2 Gross margin R/ton R2 116 R3 875
Break-even yield T/ha 1.65 0.83
Break-even price R/ton R2 122 R3 465
Source: Kaap Agri, GSA and BFAP, April 2021.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R3 238 1 092 1 901 2 711 3 682 4 329 5 139 5 948
R3 488 1 717 2 589 3 461 4 507 5 204 6 076 6 948
R3 738 2 342 3 276 4 211 5 332 6 079 7 014 7 948
R3 988 2 967 3 964 4 961 6 157 6 954 7 951 8 948
R4 238 3 592 4 651 5 711 6 982 7 829 8 889 9 948
R4 488 4 217 5 339 6 461 7 807 8 704 9 826 10 948
R4 738 4 842 6 026 7 211 8 632 9 579 10 764 11 948
R4 988 5 467 6 714 7 961 9 457 10 454 11 701 12 948
R5 238 6 092 7 401 8 711 10 282 11 329 12 639 13 948
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R6 340 277 1 862 3 447 5 032 6 617 8 202 9 787
R6 590 527 2 174 3 822 5 469 7 117 8 764 10 412
R6 840 777 2 487 4 197 5 907 7 617 9 327 11 037
R7 090 1 027 2 799 4 572 6 344 8 117 9 889 11 662
R7 340 1 277 3 112 4 947 6 782 8 617 10 452 12 287
R7 590 1 527 3 424 5 322 7 219 9 117 11 014 12 912
R7 840 1 777 3 737 5 697 7 657 9 617 11 577 13 537
R8 090 2 027 4 049 6 072 8 094 10 117 12 139 14 162
R8 340 2 277 4 362 6 447 8 532 10 617 12 702 14 787
Canola margin above/below wheat
Yield Price (R/ton)
R6 590 R6 840 R7 090 R7 340 R7 590 R7 840 R8 090
0.75 -8 103 -7 915 -7 728 -7 540 -7 353 -7 165 -6 978
1.00 -6 455 -6 205 -5 955 -5 705 -5 455 -5 205 -4 955
1.25 -4 808 -4 495 -4 183 -3 870 -3 558 -3 245 -2 933
1.50 -3 160 -2 785 -2 410 -2 035 -1 660 -1 285 -910
1.75 -1 513 -1 075 -638 -100 237 675 1 112
2.00 135 635 1 135 1 635 2 135 2 635 3 135
2.25 1 782 2 345 2 907 3 470 4 032 4 595 5 157
2.50 3 430 4 055 4 680 5 305 5 930 6 555 7 180
2.50 3 430 4 055 4 680 5 305 5 930 6 555 7 180

Notes

  • Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
  • 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 producers to allocate them individually.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
  • The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
  • 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.
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