OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2022/2023 SUMMER CROPS  //  Income and Cost Budgets

Eastern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower and dry beans for Eastern Free State
Crop Maize Soybeans Sunflower Dry beans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 5.50 2.00 1.80 1.50
SAFEX simulated price / producer price: 2023 R/ton 4 442 8 836 9 787 20 718
Total deductions R/ton 416 285 345 516
– Transport differential R/ton 338 167 252 –
– Grade differential R/ton 18 – – –
– Handling and commission R/ton 60 63 93 516
– Seed breeding and technology levy R/ton – 55 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 4 027 8 551 9 442 20 202
Gross income R/ha R22 148 R17 102 R16 995 R30 304

2. Variable expenditures
Contracting R/ha – – – 1 318
Crop insurance R/ha 797 1 915 731 2 939
Fertilizer R/ha 5 536 2 408 2 289 3 461
Lime R/ha 617 – – 524
Seed R/ha 1 816 1 204 743 3 960
Fuel R/ha 1 416 1 119 1 071 980
Herbicide R/ha 1 275 1 137 1 293 1 243
Insecticide / Fungicides R/ha 708 250 284 1 955
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 1 036 833 838 626
Casual labour R/ha 243 – – 2 000
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 120
Total variable expenditure R/ha R13 443 R8 865 R7 250 R19 126
Total variable expenditure R/ton R2 444 R4 433 R4 028 R12 751
3.1 Gross margin R/ha R8 705 R8 237 R9 745 R11 177
3.2 Gross margin R/ton R1 583 R4 118 R5 414 R7 452
Break-even yield T/ha 3.34 1.04 0.77 0.95
Break-even price R/ton R2 444 R4 433 R4 028 R12 751
Source: BFAP, GSA, VKB and individual farmers – 2022.
Gross margin comparison – baseline: Eastern Free State
Figure 2.3: Gross margin comparison – Baseline: Eastern Free State

Gross margin per hectare: Eastern Free State

Maize sensitivity analysis
Yield (t/ha)
Producers price 4.00 4.50 5.00 5.50 6.00 6.50 7.00
R3 627 1 064 2 878 4 691 6 505 8 318 10 132 11 945
R3 727 1 464 3 328 5 191 7 055 8 918 10 782 12 645
R3 827 1 864 3 778 5 691 7 605 9 518 11 432 13 345
R3 927 2 264 4 228 6 191 8 155 10 118 12 082 14 045
R4 027 2 664 4 678 6 691 8 705 10 718 12 732 14 745
R4 127 3 064 5 128 7 191 9 255 11 318 13 382 15 445
R4 227 3 464 5 578 7 691 9 805 11 918 14 032 16 145
R4 327 3 864 6 028 8 191 10 355 12 518 14 682 16 845
R4 427 4 264 6 478 8 691 10 905 13 118 15 332 17 545
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R8 151 1 324 3 361 5 399 7 437 9 474 11 512 13 550
R8 251 1 449 3 511 5 574 7 637 9 699 11 762 13 825
R8 351 1 574 3 661 5 749 7 837 9 924 12 012 14 100
R8 451 1 699 3 811 5 924 8 037 10 149 12 262 14 375
R8 551 1 824 3 961 6 099 8 237 10 374 12 512 14 650
R8 651 1 949 4 111 6 274 8 437 10 599 12 762 14 925
R8 751 2 074 4 261 6 449 8 637 10 824 13 012 15 200
R8 851 2 199 4 411 6 624 8 837 11 049 13 262 15 475
R8 951 2 324 4 561 6 799 9 037 11 274 13 512 15 750
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.80 2.00 2.25 2.50
R9 042 1 792 4 052 6 312 9 025 10 833 13 094 15 354
R9 142 1 892 4 177 6 462 9 205 11 033 13 319 15 604
R9 242 1 992 4 302 6 612 9 385 11 233 13 544 15 854
R9 342 2 092 4 427 6 762 9 565 11 433 13 769 16 104
R9 442 2 192 4 552 6 912 9 745 11 633 13 994 16 354
R9 542 2 292 4 677 7 062 9 925 11 833 14 219 16 604
R9 642 2 392 4 802 7 212 10 105 12 033 14 444 16 854
R9 742 2 492 4 927 7 362 10 285 12 233 14 669 17 104
R9 842 2 592 5 052 7 512 10 465 12 433 14 894 17 354
Soybeans margin above/below maize
Yield Price (R/ton)
R8 251 R8 351 R8 451 R8 551 R8 651 R8 751 R8 851
1.00 -9 319 -9 219 -9 119 -9 019 -8 919 -8 819 -8 719
1.25 -7 256 -7 131 -7 006 -6 881 -6 756 -6 631 -6 506
1.50 -5 193 -5 043 -4 893 -4 743 -4 593 -4 443 -4 293
1.75 -3 131 -2 956 -2 781 -2 606 -2 431 -2 256 -2 081
2.00 -1 068 -868 -668 -468 -269 -68 132
2.25 995 1 220 1 445 1 670 1 895 2 120 2 345
2.50 3 057 3 307 3 557 3 807 4 057 4 307 4 557
2.75 5 120 5 395 5 670 5 945 6 220 6 495 6 770
3.00 7 183 7 483 7 783 8 083 8 383 8 683 8 983

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 – 83:26:13. Soybeans N:P:K – 10:15:20. Sunflower N:P:K – 35:8:8. Dry beans N:P:K – 40:15:20.
  • 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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