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

Northern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower, groundnuts and grain sorghum for Western and Northern Free State
Area Western and Northern Free State
Crop Maize (higher potential) Maize (normal potential) Soybeans Sunflower Groundnuts Grain sorghum
Production system Dryland

1. Income
Yield: deterministic Ton/ha 5.50 4.50 1.75 1.75 1.50 3.00
SAFEX simulated price / producer price: 2023 R/ton 4 442 4 396 8 836 9 787 12 457 4 986
Total deductions R/ton 408 345 279 423 63 63
– Transport differential R/ton 327 257 161 263 – –
– Grade differential R/ton 18 25 – – – –
– Handling and commission R/ton 63 63 63 100 63 63
– Seed breeding & technology levy R/ton – – 55 60 – –
Price premiums R/ton – – – – – –
Net farm gate price R/ton 4 035 4 051 8 557 9 363 12 394 4 923
Gross income R/ha R22 192 R18 228 R14 975 R16 386 R18 592 R14 769

2. Variable expenditures
Contracting R/ha – – – – – –
Crop insurance R/ha 244 201 734 460 291 473
Fertilizer R/ha 5 246 4 076 1 594 2 593 2 381 3 839
Lime R/ha 299 299 – – 165 174
Seed R/ha 1 491 1 171 923 562 2 066 350
Fuel R/ha 1 467 1 454 1 039 1 133 1 996 1 349
Herbicide R/ha 1 046 1 172 1 513 1 079 1 430 1 043
Insecticide / Fungicides R/ha 967 967 250 346 971 686
Marketing costs R/ha – – – – – –
Repairs and maintenance R/ha 934 928 790 733 934 778
Casual labour R/ha 243 199 – – 498 68
Aerial spray R/ha – – – – – –
Other expenditure R/ha – – – – 350 –
Total variable expenditure R/ha R11 937 R10 467 R6 842 R6 904 R11 081 R8 760
Total variable expenditure R/ton R2 170 R2 326 R3 910 R3 945 R7 387 R2 920
3.1 Gross margin R/ha R10 255 R7 761 R8 133 R9 482 R7 510 R6 009
3.2 Gross margin R/ton R1 865 R1 725 R4 647 R5 418 R5 007 R2 003
Break-even yield T/ha 2.96 2.58 0.80 0.74 0.89 1.78
Break-even price R/ton R2 170 R2 326 R3 910 R3 945 R7 387 R2 920
Source: BFAP, GSA and Senwes – 2022.
Gross margin comparison – baseline: Northern Free State
Gross margin comparison - Baseline: Western / Northern Free State

Gross margin per hectare: Northern Free State

Maize sensitivity analysis (higher potential soils)
Yield (t/ha)
Producers price 4.00 4.50 5.00 5.50 6.00 6.50 7.00
R3 635 2 603 4 420 6 238 8 055 9 873 11 690 13 508
R3 735 3 003 4 870 6 738 8 605 10 473 12 340 14 208
R3 835 3 403 5 320 7 238 9 155 11 073 12 990 14 908
R3 935 3 803 5 770 7 738 9 705 11 673 13 640 15 608
R4 035 4 203 6 220 8 238 10 255 12 273 14 290 16 308
R4 135 4 603 6 670 8 738 10 805 12 873 14 940 17 008
R4 235 5 003 7 120 9 238 11 355 13 473 15 590 17 708
R4 335 5 403 7 570 9 738 11 905 14 073 16 240 18 408
R4 435 5 803 8 020 10 238 12 455 14 673 16 890 19 108
Soybeans sensitivity analysis (normal potential soils)
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R8 157 1 315 3 354 5 394 7 433 9 472 11 511 13 550
R8 257 1 415 3 479 5 544 7 608 9 672 11 736 13 800
R8 357 1 515 3 604 5 694 7 783 9 872 11 961 14 050
R8 457 1 615 3 729 5 844 7 958 10 072 12 186 14 300
R8 557 1 715 3 854 5 994 8 133 10 272 12 411 14 550
R8 567 1 815 3 979 6 144 8 308 10 472 12 636 14 800
R8 757 1 915 4 104 6 294 8 483 10 672 12 861 15 050
R8 857 2 015 4 229 6 444 8 658 10 872 13 086 15 300
R8 957 2 115 4 354 6 594 8 833 11 072 13 311 15 550
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.75 2.00 2.25 2.50
R8 963 2 060 4 300 6 541 8 782 11 023 13 264 15 505
R9 063 2 160 4 425 6 691 8 957 11 223 13 489 15 755
R9 163 2 260 4 550 6 841 9 132 11 423 13 714 16 005
R9 263 2 360 4 675 6 991 9 307 11 623 13 939 16 255
R9 363 2 460 4 800 7 141 9 482 11 823 14 164 16 505
R9 463 2 560 4 925 7 291 9 657 12 023 14 389 16 755
R9 563 2 660 5 050 7 441 9 832 12 223 14 614 17 005
R9 663 2 760 5 175 7 591 10 007 12 423 14 839 17 255
R9 763 2 860 5 300 7 741 10 182 12 623 15 064 17 505
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R11 994 -1 410 1 813 5 037 8 260 11 484 14 708 17 931
R12 094 -1 335 1 913 5 162 8 410 11 659 14 908 18 156
R12 194 -1 260 2 013 5 287 8 560 11 834 15 108 18 381
R12 294 -1 185 2 113 5 412 8 710 12 009 15 308 18 606
R12 394 -1 110 2 213 5 537 8 860 12 184 15 508 18 831
R12 494 -1 035 2 313 5 662 9 010 12 359 15 708 19 056
R12 594 -960 2 413 5 787 9 160 12 534 15 908 19 281
R12 694 -885 2 513 5 912 9 310 12 709 16 108 19 506
R12 794 -810 2 613 6 037 9 460 12 884 16 308 19 731
Soybeans margin above/below maize
Yield Price (R/ton)
R8 257 R8 357 R8 457 R8 557 R8 657 R8 757 R8 857
0.75 -10 904 -10 829 -10 754 -10 679 -10 604 -10 529 -10 454
1.00 -8 840 -8 740 -8 640 -8 540 -8 440 -8 340 -8 240
1.25 -6 776 -6 651 -6 526 -6 401 -6 276 -6 151 -6 026
1.50 -4 712 -4 562 -4 412 -4 262 -4 112 -3 962 -3 812
1.75 -2 648 -2 473 -2 298 -2 123 -1 948 -1 773 -1 598
2.00 -583 -383 -183 17 217 417 617
2.25 1 481 1 706 1 931 2 156 2 381 2 606 2 831
2.50 3 545 3 795 4 045 4 295 4 545 4 795 5 045
2.75 5 609 5 884 6 159 6 434 6 709 6 984 7 259

Notes

  • The Northern Free State high potential maize budget represents the cultivation of yellow maize under high potential conditions such as water table soils.
  • 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 (higher potential) N:P:K – 92:16:14. Maize (normal potential) N:P:K – 70:15:7. Soybeans N:P:K – 10:10:10. Sunflower N:P:K – 45:7:10. Ground Nuts N:P:K – 15:15:15. Grain Sorghum N:P:K – 69:14:8.
  • 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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