OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


WINTER CROPS  //  2022 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat and canola for Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.90
SAFEX simulated / derived price: 2022 R/ton 7 038 9 364
Total deductions R/ton 944 168
– Transport differential R/ton 615 137
– Grade differential R/ton 210
– Marketing, handling and statutory levies R/ton 119 31
Price premiums / Canola back-payment (10% of contracted price) R/ton 936
Net farm gate price R/ton 6 095 10 132
Gross income R/ha R20 112 R19 251

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 52 55
Fertilizer R/ha 5 717 5 198
Lime R/ha 199 199
Seed R/ha 784 1 051
Fuel R/ha 701 537
Herbicide R/ha 1 804 1 276
Insecticide R/ha 282 474
Fungicides R/ha 838 442
Marketing costs R/ha 66 20
Repairs and maintenance R/ha 769 672
Casual labour R/ha 19 21
Aerial spray R/ha
Other expenditure R/ha 101 90
Total variable expenditure R/ha R11 332 R10 034
Total variable expenditure R/ton R3 434 R5 281
3.1 Gross margin R/ha R8 780 R9 217
3.2 Gross margin R/ton R2 661 R4 851
Break-even yield T/ha 1.86 0.99
Break-even price R/ton R3 434 R5 281
Source: Kaap Agri, GSA and BFAP, updated September 2022.
Gross margin comparison – Baseline: Swartland
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R5 095 1 405 2 678 3 952 5 480 6 499 7 773 9 046
R5 345 2 030 3 366 4 702 6 305 7 374 8 710 10 046
R5 595 2 655 4 053 5 452 7 130 8 249 9 648 11 046
R5 845 3 280 4 741 6 202 7 955 9 124 10 585 12 046
R6 095 3 905 5 428 6 952 8 780 9 999 11 523 13 046
R6 345 4 530 6 116 7 702 9 605 10 874 12 460 14 046
R6 595 5 155 6 803 8 452 10 430 11 749 13 398 15 046
R6 845 5 780 7 491 9 202 11 255 12 624 14 335 16 046
R7 095 6 405 8 178 9 952 12 080 13 499 15 273 17 046
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.15 1.40 1.65 1.90 2.15 2.40 2.65
R9 132 468 2 751 5 034 7 317 9 600 11 883 14 166
R9 382 755 3 101 5 447 7 792 10 138 12 483 14 829
R9 632 1 043 3 451 5 859 8 267 10 675 13 083 15 491
R9 882 1 330 3 801 6 272 8 742 11 213 13 683 16 154
R10 132 1 618 4 151 6 684 9 217 11 750 14 283 16 816
R10 382 1 905 4 501 7 097 9 692 12 288 14 883 17 479
R10 632 2 193 4 851 7 509 10 167 12 825 15 483 18 141
R10 882 2 480 5 201 7 922 10 642 13 363 16 083 18 804
R11 132 2 768 5 551 8 334 11 117 13 900 16 683 19 466
Canola margin above/below wheat
Yield Price (R/ton)
R9 382 R9 632 R9 882 R10 132 R10 382 R10 632 R10 882
0.75 -11 778 -11 590 -11 403 -11 215 -11 028 -10 840 -10 653
1.15 -8 025 -7 737 -7 450 -7 162 -6 875 -6 587 -6 300
1.40 -5 679 -5 329 -4 979 -4 629 -4 279 -3 929 -3 579
1.65 -3 334 -2 921 -2 509 -2 096 -1 684 -1 271 -859
1.90 -988 -513 -38 437 912 1 387 1 862
2.15 1 358 1 895 2 433 2 970 3 508 4 045 4 583
2.40 3 703 4 303 4 903 5 503 6 103 6 703 7 303
2.65 6 049 6 711 7 374 8 036 8 699 9 361 10 024
2.50 4 641 5 266 5 891 6 516 7 141 7 766 8 391

Notes

  • Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
  • 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 producers to allocate them individually.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
  • The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
  • 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.
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