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 (Lichtenburg) – dryland

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

1. Income
Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price / producer price: 2023 R/ton 4 396 8 836 9 787 12 457
Total deductions R/ton 329 237 339 63
– Transport differential R/ton 241 119 246 –
– Grade differential R/ton 25 – – –
– Handling and commission R/ton 63 63 93 63
– Seed breeding and technology levy R/ton – 55 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 4 067 8 599 9 448 12 394
Gross income R/ha R17 283 R12 898 R16 061 R18 592

2. Variable expenditures
Contracting R/ha – – – –
Crop insurance R/ha 260 1 444 451 297
Fertilizer R/ha 4 257 1 687 2 182 2 372
Lime R/ha 339 – – 187
Seed R/ha 1 011 722 650 2 002
Fuel R/ha 1 321 1 055 1 073 2 030
Herbicide R/ha 1 039 1 411 803 1 228
Insecticide / Fungicides R/ha 967 256 392 1 001
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 1 198 681 938 1 230
Casual labour R/ha 188 – – 498
Aerial spray R/ha – – – –
Other expenditure R/ha – – – 327
Total variable expenditure R/ha R10 579 R7 256 R6 489 R11 173
Total variable expenditure R/ton R2 489 R4 838 R3 817 R7 449
3.1 Gross margin R/ha R6 704 R5 642 R9 572 R7 419
3.2 Gross margin R/ton R1 577 R3 761 R5 630 R4 946
Break-even yield T/ha 2.60 0.84 0.69 0.90
Break-even price R/ton R2 489 R4 838 R3 817 R7 449
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 (Lichtenburg)

Maize sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.25 3.75 4.25 4.75 5.25 5.75
R3 667 -496 1 338 3 171 5 004 6 838 8 671 10 504
R3 767 -221 1 663 3 546 5 429 7 313 9 196 11 079
R3 867 54 1 988 3 921 5 854 7 788 9 721 11 654
R3 967 329 2 313 4 296 6 279 8 263 10 246 12 229
R4 067 604 2 638 4 671 6 704 8 738 10 771 12 804
R4 167 879 2 963 5 046 7 129 9 213 11 296 13 379
R4 267 1 154 3 288 5 421 7 554 9 688 11 821 13 954
R4 367 1 429 3 613 5 796 7 979 10 163 12 346 14 529
R4 467 1 704 3 938 6 171 8 404 10 638 12 871 15 104
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R8 199 -1 107 942 2 992 5 042 7 092 9 141 11 191
R8 299 -1 032 1 042 3 117 5 192 7 267 9 341 11 416
R8 399 -957 1 142 3 242 5 342 7 442 9 541 11 641
R8 499 -882 1 242 3 367 5 492 7 617 9 741 11 866
R8 599 -807 1 342 3 492 5 642 7 792 9 941 12 091
R8 699 -732 1 442 3 617 5 792 7 967 10 141 12 316
R8 799 -657 1 542 3 742 5 942 8 142 10 341 12 541
R8 899 -582 1 642 3 867 6 092 8 317 10 541 12 766
R8 999 -507 1 742 3 992 6 242 8 492 10 741 12 991
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R9 048 2 558 4 820 7 082 8 892 11 606 13 868 16 130
R9 148 2 658 4 945 7 232 9 062 11 806 14 093 16 380
R9 248 2 758 5 070 7 382 9 232 12 006 14 318 16 630
R9 348 2 858 5 195 7 532 9 402 12 206 14 543 16 880
R9 448 2 958 5 320 7 682 9 572 12 406 14 768 17 130
R9 548 3 058 5 445 7 832 9 742 12 606 14 993 17 380
R9 648 3 158 5 570 7 982 9 912 12 806 15 218 17 630
R9 748 3 258 5 695 8 132 10 082 13 006 15 443 17 880
R9 848 3 358 5 820 8 282 10 252 13 206 15 668 18 130
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R11 994 -1 502 1 721 4 945 8 169 11 392 14 616 17 839
R12 094 -1 427 1 821 5 070 8 319 11 567 14 816 18 064
R12 194 -1 352 1 921 5 195 8 469 11 742 15 016 18 289
R12 294 -1 277 2 021 5 320 8 619 11 917 15 216 18 514
R12 394 -1 202 2 121 5 445 8 769 12 092 15 416 18 739
R12 494 -1 127 2 221 5 570 8 919 12 267 15 616 18 964
R12 594 -1 052 2 321 5 695 9 069 12 442 15 816 19 189
R12 694 -977 2 421 5 820 9 219 12 617 16 016 19 414
R12 794 -902 2 521 5 945 9 369 12 792 16 216 19 639
Soybeans margin above/below maize
Yield Price (R/ton)
R8 299 R8 399 R8 499 R8 599 R8 699 R8 799 R8 899
0.50 -9 811 -9 761 -9 711 -9 661 -9 611 -9 561 -9 511
0.75 -7 737 -7 662 -7 587 -7 512 -7 437 -7 362 -7 287
1.00 -5 662 -5 562 -5 462 -5 362 -5 262 -5 162 -5 062
1.25 -3 587 -3 462 -3 337 -3 212 -3 087 -2 962 -2 837
1.50 -1 512 -1 362 -1 212 -1 062 -912 -762 -612
1.75 562 737 912 1 087 1 262 1 437 1 612
2.00 2 637 2 837 3 037 3 237 3 437 3 637 3 837
2.25 4 712 4 937 5 162 5 387 5 612 5 837 6 062
2.50 6 787 7 037 7 287 7 537 7 787 8 037 8 287

Notes

  • Farm gate price for ground nuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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 – 72:16:8. Soybeans N:P:K – 10:12:8. Sunflower N:P:K – 40:9:0. Ground Nuts N:P:K – 15:15:15.
  • 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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