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

Limpopo – irrigation

Income and cost budgets for wheat and barley for Limpopo
Area Limpopo
Crop Wheat Barley
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 6.50 6.00
SAFEX simulated price / producer price: 2022 R/ton 7 038 7 038
Total deductions R/ton 626 577
– Transport differential R/ton 224 224
– Grade differential R/ton 286 272
– Marketing, handling and statutory levies R/ton 116 81
Price premiums / Canola back-payment (10% of contracted price) R/ton – 65
Net farm gate price R/ton 6 412 6 134
Gross income R/ha R41 680 R36 804

2. Variable expenditures
Contracting R/ha 938 938
Crop insurance R/ha 2 334 2 061
Fertilizer R/ha 9 659 8 228
Lime R/ha 665 665
Seed R/ha 1 375 1 334
Fuel R/ha 1 574 1 561
Herbicide R/ha 647 836
Insecticide R/ha 276 236
Fungicides R/ha – –
Marketing costs R/ha 129 149
Repairs and maintenance R/ha 813 715
Casual labour R/ha – –
Irrigation: Water R/ha 1 647 1 403
Irrigation: Electricity R/ha 3 490 2 973
Aerial spray R/ha 329 353
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 638 513
Total variable expenditure R/ha R24 513 R21 965
Total variable expenditure R/ton R3 771 R3 661
3.1 Gross margin R/ha R17 166 R14 839
3.2 Gross margin R/ton R2 641 R2 473
Break-even yield T/ha 3.82 3.58
Break-even price R/ton R3 771 R3 661
Source: GSA, BFAP and Obaro, updated September 2022.
Gross margin comparison – Baseline: Limpopo
Graph showing baseline gross margin comparison for Limpopo irrigation

Gross margin per hectare: Limpopo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.75 6.00 6.25 6.50 6.75 7.00 7.25
R5 412 6 607 7 960 9 313 10 666 12 019 13 373 14 726
R5 662 8 045 9 460 10 876 12 291 13 707 15 123 16 538
R5 912 9 482 10 960 12 438 13 916 15 394 16 873 18 351
R6 162 10 920 12 460 14 001 15 541 17 082 18 623 20 163
R6 412 12 357 13 960 15 563 17 166 18 769 20 373 21 976
R6 662 13 795 15 460 17 126 18 791 20 457 22 123 23 788
R6 912 15 232 16 960 18 688 20 416 22 144 23 873 25 601
R7 162 16 670 18 460 20 251 22 041 23 832 25 623 27 413
R7 412 18 107 19 960 21 813 23 666 25 519 27 373 29 226
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R5 134 4 989 6 272 7 556 8 839 10 123 11 406 12 690
R5 384 6 301 7 647 8 993 10 339 11 685 13 031 14 377
R5 634 7 614 9 022 10 431 11 839 13 248 14 656 16 065
R5 884 8 926 10 397 11 868 13 339 14 810 16 281 17 752
R6 134 10 239 11 772 13 306 14 839 16 373 17 906 19 440
R4 685 11 551 13 147 14 743 16 339 17 935 19 531 21 127
R6 634 12 864 14 522 16 181 17 839 19 498 21 156 22 815
R6 884 14 176 15 897 17 618 19 339 21 060 22 781 24 502
R7 134 15 489 17 272 19 056 20 839 22 623 24 406 26 190

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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