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

Free State – dryland

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

1. Income

Yield: deterministic Ton/ha 2.50 2.50
SAFEX simulated / derived price: 2022 R/ton 7 038 7 038
Total deductions R/ton 805 810
– Transport differential R/ton 283 288
– Grade differential R/ton 421 421
– Marketing, handling and statutory levies R/ton 101 101
Price premiums / Canola back-payment (10% of contracted price) R/ton
Net farm gate price R/ton 6 233 6 229
Gross income R/ha R15 583 R15 572

2. Variable expenditures

Contracting R/ha 869 869
Crop insurance R/ha 483 1 246
Fertilizer R/ha 4 058 3 613
Lime R/ha 462 571
Seed R/ha 533 533
Fuel R/ha 878 1 245
Herbicide R/ha 684 641
Insecticide R/ha 116 199
Fungicides R/ha
Marketing costs R/ha 46 46
Repairs and maintenance R/ha 608 1 097
Casual labour R/ha
Aerial spray R/ha
Other expenditure R/ha 14
Total variable expenditure R/ha R8 750 R10 059
Total variable expenditure R/ton R3 500 R4 023
3.1 Gross margin R/ha R6 833 R5 513
3.2 Gross margin R/ton R2 733 R2 205
Break-even yield T/ha 1.40 1.61
Break-even price R/ton R3 500 R4 023
Source: VKB, GSA and BFAP, updated September 2022.
Gross margin comparison – Baseline: Free State (Eastern and Central regions)
Graph showing baseling gross margin comparison of the Free State

Gross margin per hectare: Central Free State

Wheat sensitivity analysis: Eastern Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R5 233 408 1 716 3 025 4 33 5 641 6 950 8 258
R5 483 845 2 216 3 587 4 958 6 329 7 700 9 071
R5 733 1 283 2 716 4 150 5 583 7 016 8 450 9 883
R5 983 1 720 3 216 4 712 6 208 7 704 9 200 10 696
R6 233 2 158 3 716 5 275 6 833 8 391 9 950 11 508
R6 483 2 595 4 216 5 837 7 458 9 079 10 700 12 321
R6 733 3 033 4 716 6 400 8 083 9 766 11 450 13 133
R6 983 3 470 5 216 6 962 8 708 10 454 12 200 13 946
R7 233 3 908 5 716 7 525 9 333 11 141 12 950 14 758
Wheat sensitivity analysis: Eastern Free State
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R5 229 -908 399 1 706 3 013 4 321 5 628 6 935
R5 479 -471 899 2 269 3 638 5 008 6 378 7 748
R5 729 -33 1 399 2 831 4 263 5 696 7 128 8 560
R5 979 404 1 899 3 394 4 888 6 383 7 878 9 373
R6 229 842 2 399 3 956 5 513 7 071 8 628 10 185
R6 479 1 279 2 899 4 519 6 138 7 758 9 378 10 998
R6 729 1 717 3 399 5 081 6 763 8 446 10 128 11 810
R6 979 2 154 3 899 5 644 7 388 9 133 10 878 12 623
R7 229 2 592 4 399 6 206 8 013 9 821 11 628 13 435

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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