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 (Koster) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Koster region
Area North West: Koster
Crop Maize Soybeans Sunflower
Production system Dryland

1. Income
Yield: deterministic Ton/ha 4.75 2.00 2.00
SAFEX simulated price / producer price: 2023 R/ton 4 396 8 836 9 787
Total deductions R/ton 269 207 292
– Transport differential R/ton 181 89 199
– Grade differential R/ton 25 – –
– Handling and commission R/ton 63 63 –
– Seed breeding and technology levy R/ton – 55 93
Price premiums R/ton – – –
Net farm gate price R/ton 4 127 8 629 9 495
Gross income R/ha R19 601 R17 258 R18 989

2. Variable expenditures
Contracting R/ha – – –
Crop insurance R/ha 413 1 932 551
Fertilizer R/ha 4 721 1 905 2 678
Lime R/ha 339 – –
Seed R/ha 1 118 722 650
Fuel R/ha 1 339 1 098 1 091
Herbicide R/ha 1 039 1 411 912
Insecticide / Fungicides R/ha 967 256 392
Marketing costs R/ha – – –
Repairs and maintenance R/ha 947 674 841
Casual labour R/ha 210 – –
Aerial spray R/ha – – –
Other expenditure R/ha – – –
Total variable expenditure R/ha R11 093 R7 999 R7 116
Total variable expenditure R/ton R2 335 R3 999 R3 558
3.1 Gross margin R/ha R8 509 R9 259 R11 873
3.2 Gross margin R/ton R1 791 R4 630 R5 936
Break-even yield T/ha 2.69 0.93 0.75
Break-even price R/ton R2 335 R3 999 R3 558
Source: BFAP, GSA, NWK and individual farmers – 2022.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Koster)

Maize sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.75 4.25 4.75 5.25 5.75 6.25
R3 727 1 019 2 882 4 745 6 609 8 472 10 335 12 199
R3 827 1 344 3 257 5 170 7 084 8 997 10 910 12 824
R3 927 1 669 3 632 5 595 7 559 9 522 11 485 13 449
R4 027 1 994 4 007 6 020 8 034 10 047 12 060 14 074
R4 127 2 319 4 382 6 445 8 509 10 572 12 635 14 699
R4 227 2 644 4 757 6 870 8 984 11 097 13 210 15 324
R4 327 2 969 5 132 7 295 9 459 11 622 13 785 15 949
R4 427 3 294 5 507 7 720 9 934 12 147 14 360 16 574
R4 527 3 619 5 882 8 145 10 409 12 672 14 935 17 199
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R8 229 2 287 4 345 6 402 8 459 10 516 12 573 14 631
R8 329 2 412 4 495 6 577 8 659 10 741 12 823 14 906
R8 429 2 537 4 645 6 752 8 859 10 966 13 073 15 181
R8 529 2 662 4 795 6 927 9 059 11 191 13 323 15 456
R8 629 2 787 4 945 7 102 9 259 11 416 13 573 15 731
R8 729 2 912 5 095 7 277 9 459 11 641 13 823 16 006
R8 829 3 037 5 245 7 452 9 659 11 866 14 073 16 281
R8 929 3 162 5 395 7 627 9 859 12 091 14 323 16 556
R9 029 3 287 5 545 7 802 10 059 12 316 14 573 16 831
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R9 095 4 252 6 526 8 799 11 073 13 346 15 620 17 894
R9 195 4 377 6 676 8 974 11 273 13 571 15 870 18 169
R9 295 4 502 6 826 9 149 11 473 13 796 16 120 18 444
R9 395 4 627 6 976 9 324 11 673 14 021 16 370 18 719
R9 495 4 752 7 126 9 499 11 873 14 246 16 620 18 994
R9 595 4 877 7 276 9 674 12 073 14 471 16 870 19 269
R9 695 5 002 7 426 9 849 12 273 14 696 17 120 19 544
R9 795 5 127 7 576 10 024 12 473 14 921 17 370 19 819
R9 895 5 252 7 726 10 199 12 673 15 146 17 620 20 094
Soybeans margin above/below maize
Yield Price (R/ton)
R8 329 R8 429 R8 529 R8 629 R8 729 R8 829 R8 929
1.00 -8 178 -8 078 -7 978 -7 878 -7 778 -7 678 -7 578
1.25 -6 096 -5 971 -5 846 -5 721 -5 596 -5 471 -5 346
1.50 -4 014 -3 864 -3 714 -3 564 -3 414 -3 264 -3 114
1.75 -1 932 -1 757 -1 582 -1 407 -1 232 -1 057 -882
2.00 150 350 550 750 950 1 150 1 350
2.25 2 233 2 458 2 683 2 908 3 133 3 358 3 583
2.50 4 315 4 565 4 815 5 065 5 315 5 565 5 815
2.75 6 397 6 672 6 947 7 222 7 497 7 772 8 047
3.00 8 479 8 779 9 079 9 379 9 679 9 979 10 279

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 – 81:18:8. Soybeans N:P:K – 10:15:8. Sunflower N:P:K – 54:9:0.
  • 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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