Southern Cape – dryland

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

Area		Southern Cape: Eastern Rûens (normal potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.50	2.50	1.65	2.20	1.50
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	R15 244	R15 066	R16 943	R13 544	R9 989
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	44	43	49	39	–
Fertilizer	R/ha	3 662	3 454	3 843	2 908	1 520
Lime	R/ha	199	199	199	167	–
Seed	R/ha	523	332	967	493	852
Fuel	R/ha	703	719	716	699	647
Herbicide	R/ha	1 735	1 234	1 230	839	758
Insecticide	R/ha	279	281	474	202	186
Fungicides	R/ha	569	848	362	416	190
Marketing costs	R/ha	57	78	31	–	–
Repairs and maintenance	R/ha	529	517	560	559	391
Casual labour	R/ha	17	17	19	17	15
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	128	130	123	101	101
Total variable expenditure	R/ha	R8 445	R7 851	R8 570	R6 440	R4 659
Total variable expenditure	R/ton	R3 378	R3 140	R5 194	R2 927	R3 106
3.1 Gross margin	R/ha	R6 799	R7 216	R8 373	R7 104	R5 330
3.2 Gross margin	R/ton	R2 720	R2 886	R5 057	R3 229	R3 553
Break-even yield	T/ha	1.38	1.30	0.83	1.05	0.70
Break-even price	R/ton	R3 378	R3 140	R5 194	R2 927	R3 106

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

Gross margin per hectare: Southern Cape – Eastern Rûens (normal 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.