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

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 3.80 3.00 7.00
SAFEX simulated price / producer price: 2023 R/ton 4 442 8 836 9 787 4 986
Total deductions R/ton 243 201 290 63
– Transport differential R/ton 167 83 190 –
– Grade differential R/ton 13 – – –
– Handling and commission R/ton 63 63 100 63
– Seed breeding and technology levy R/ton – 55 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 4 200 8 635 9 497 4 923
Gross income R/ha R50 399 R32 813 R28 490 R34 461

2. Variable expenditures
Contracting R/ha 883 925 – –
Crop insurance R/ha 1 714 1 805 684 877
Fertilizer R/ha 13 806 4 598 4 169 8 363
Lime R/ha 565 – – 367
Seed R/ha 4 539 2 029 963 800
Fuel R/ha 1 672 1 431 1 418 1 500
Herbicide R/ha 1 335 650 882 1 213
Insecticide / Fungicides R/ha 840 390 392 816
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 993 893 845 579
Casual labour R/ha 530 – – 158
Aerial spray R/ha – – – 239
Irrigation electricity R/ha 3 708 3 034 1 686 2 360
Water R/ha 1 226 1 003 557 780
Other expenditure: scheduling/irrigation equipment R&M R/ha 692 587 377 482
Total variable expenditure R/ha R32 504 R17 345 R11 972 R18 535
Total variable expenditure R/ton R2 709 R4 565 R3 991 R2 648
3.1 Gross margin R/ha R17 895 R15 467 R16 517 R15 927
3.2 Gross margin R/ton R1 491 R4 070 R5 506 R2 275
Break-even yield T/ha 7.74 2.01 1.26 3.76
Break-even price R/ton R2 709 R4 565 R3 991 R2 648
Source: BFAP, GSA, NWK and individual farmers – 2022.
Gross margin comparison – baseline: North West (Brits)
Figure 3.3: Gross margin comparison – Baseline: North West (Brits region) irrigation

Gross margin per hectare: North West (Brits)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R3 800 7 395 9 295 11 195 13 095 14 995 16 895 18 795
R3 900 8 445 10 395 12 345 14 295 16 245 18 195 20 145
R4 000 9 495 11 495 13 495 15 495 17 495 19 495 21 495
R4 100 10 545 12 595 14 645 16 695 18 745 20 795 22 845
R4 200 11 595 13 695 15 795 17 895 19 995 22 095 24 195
R4 300 12 645 14 795 16 945 19 095 21 244 23 395 25 545
R4 400 13 695 15 895 18 095 20 295 22 495 24 695 26 895
R4 500 14 745 16 995 19 245 21 495 23 745 25 995 28 245
R4 600 15 795 18 095 20 395 22 695 24 995 27 295 29 595
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R8 235 7 359 9 418 11 477 13 947 15 594 17 653 19 712
R8 335 7 659 9 743 11 827 14 327 15 994 18 078 20 162
R8 435 7 959 10 068 12 177 14 707 16 394 18 503 20 612
R8 535 8 259 10 393 12 527 15 087 16 794 18 928 21 062
R8 635 8 559 10 718 12 877 15 467 17 194 19 353 21 512
R8 735 8 859 11 043 13 227 15 847 17 594 19 778 21 962
R8 835 9 159 11 368 13 577 16 227 17 994 20 203 22 412
R8 935 9 459 11 693 13 927 16 607 18 394 20 628 22 862
R9 035 9 759 12 018 14 277 16 987 18 794 21 053 23 312
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.30 2.55 2.80 3.00 3.30 3.55 3.80
R9 097 8 950 11 224 13 498 15 317 18 046 20 320 22 595
R9 197 9 180 11 479 13 778 15 617 18 376 20 675 22 975
R9 297 9 410 11 734 14 058 15 917 18 706 21 030 23 355
R9 397 9 640 11 989 14 338 16 217 19 036 21 385 23 735
R9 497 9 870 12 244 14 618 16 517 19 366 21 740 24 115
R9 597 10 100 12 499 14 898 16 817 19 696 22 095 24 495
R9 697 10 330 12 754 15 178 17 117 20 026 22 450 24 875
R9 797 10 560 13 009 15 458 17 417 20 356 22 805 25 255
R9 897 10 790 13 264 15 735 17 717 20 686 23 160 25 635
Soybeans margin above/below maize
Yield Price (R/ton)
R8 335 R8 435 R8 535 R8 635 R8 735 R8 835 R8 935
2.75 -12 319 -12 044 -11 769 -11 494 -11 219 -10 944 -10 669
3.00 -10 235 -9 935 -9 635 -9 335 -9 035 -8 735 -8 435
3.25 -8 152 -7 827 -7 502 -7 177 -6 852 -6 527 -6 202
3.50 -6 068 -5 718 -5 368 -5 018 -4 668 -4 318 -3 968
3.80 -3 567 -3 187 -2 807 -2 427 -2 047 -1 667 -1 287
4.00 -1 900 -1 500 -1 100 -700 -300 100 500
4.25 183 608 1 033 1 458 1 883 2 308 2 733
4.50 2 267 2 717 3 167 3 617 4 067 4 517 4 967
4.75 4 351 4 826 5 301 5 776 6 251 6 726 7 201

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 – 240:42:48. Soybeans N:P:K – 14:36:42. Sunflower N:P:K – 60:15:24. Grain sorghum N:P:K – 140:25:28.
  • 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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