OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


WINTER CROPS  //  2022 Income and Cost Budgets

Eastern Free State – irrigation

Income and cost budgets for wheat for Eastern Free State
Area Eastern Free State
Crop Wheat
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 6.50
SAFEX simulated price / producer price: 2022 R/ton 7 038
Total deductions R/ton 810
– Transport differential R/ton 288
– Grade differential R/ton 421
– Marketing, handling and statutory levies R/ton 101
Price premiums / Canola back-payment (10% of contracted price) R/ton
Net farm gate price R/ton 6 229
Gross income R/ha R40 488

2. Variable expenditures

Contracting R/ha 1 263
Crop insurance R/ha 3 239
Fertilizer R/ha 10 129
Lime R/ha 462
Seed R/ha 2 131
Fuel R/ha 1 065
Herbicide R/ha 770
Insecticide R/ha 995
Fungicides R/ha
Marketing costs R/ha 119
Repairs and maintenance R/ha 1 465
Casual labour R/ha
Irrigation: Water R/ha 516
Irrigation: Electricity R/ha 1 363
Aerial spray R/ha
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 19
Total variable expenditure R/ha R23 535
Total variable expenditure R/ton R3 621
3.1 Gross margin R/ha R16 953
3.2 Gross margin R/ton R2 608
Break-even yield T/ha 3.78
Break-even price R/ton R3 621
Source: VKB, GSA and BFAP, updated September 2022.
Gross margin comparison – Baseline: Free State
Graph showing baseline gross margin comparison for Free State irrigation

Gross margin per hectare: Free State

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.75 6.00 6.25 6.50 6.75 7.00 7.25
R5 229 6 531 7 838 9 145 10 453 11 760 13 067 14 374
R5 479 7 968 9 338 10 708 12 078 13 447 14 817 16 187
R5 729 9 406 10 838 12 270 13 703 15 135 16 567 17 999
R5 979 10 843 12 338 13 833 15 328 16 822 18 317 19 812
R6 229 12 281 13 838 15 395 16 953 18 510 20 067 21 624
R6 479 13 718 15 338 16 958 18 578 20 197 21 817 23 437
R6 729 15 156 16 838 18 520 20 203 21 885 23 567 25 249
R6 979 16 593 18 338 20 083 21 828 23 572 25 317 27 062
R7 229 18 031 19 838 21 645 23 453 25 260 27 067 28 874

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.
  • 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.
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