Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – high potential regions)

Area		Southern Cape: Eastern Rûens (high potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	1.90	2.50	1.70
SAFEX simulated / derived price: 2022	R/ton	7 038	7 038	9 364	7 038	6 801
Total deductions	R/ton	941	890	32	882	141
– Transport differential	R/ton	615	615	–	840	100
– Grade differential	R/ton	210	194	–	–	–
– Marketing, handling and statutory levies	R/ton	116	81	32	42	41
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	936	–	–
Net farm gate price	R/ton	6 098	6 026	10 269	6 156	6 660
Gross income	R/ha	R18 293	R18 079	R19 510	R15 391	R11 321
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	53	52	56	44	–
Fertilizer	R/ha	4 436	4 360	4 742	3 828	1 822
Lime	R/ha	199	199	199	167	–
Seed	R/ha	611	485	1 051	543	994
Fuel	R/ha	723	739	726	711	655
Herbicide	R/ha	1 804	1 141	1 276	927	882
Insecticide	R/ha	281	284	474	205	186
Fungicides	R/ha	668	1 167	468	541	249
Marketing costs	R/ha	68	93	35	–	–
Repairs and maintenance	R/ha	635	672	678	635	509
Casual labour	R/ha	19	20	21	19	15
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	128	130	123	101	101
Total variable expenditure	R/ha	R9 624	R9 341	R9 848	R7 721	R5 414
Total variable expenditure	R/ton	R3 208	R3 114	R5 183	R3 088	R3 184
3.1 Gross margin	R/ha	R8 669	R8 738	R9 662	R7 670	R5 908
3.2 Gross margin	R/ton	R2 890	R2 913	R5 085	R3 068	R3 475
Break-even yield	T/ha	1.58	1.55	0.96	1.25	0.81
Break-even price	R/ton	R3 208	R3 114	R5 183	R3 088	R3 184

Source: SSK, GSA and BFAP, updated September 2022.

Gross margin per hectare: Southern Cape – Eastern Rûens (high potential)

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.