OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

WINTER CROPS  //  2023 Income and Cost Budgets

Limpopo – irrigation

Income and cost budgets for wheat and barley for Limpopo
Area Limpopo
Crop Wheat Barley
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 6.50 6.00
SAFEX simulated price / producer price: 2023 R/ton 6 526 6 526
Total deductions R/ton 692 652
– Transport differential R/ton 338 338
– Grade differential R/ton 254 241
– Marketing, handling and statutory levies R/ton 100 73
Price premiums / Canola back-payment (10% of contracted price) R/ton – 67
Net farm gate price R/ton 5 834 5 585
Gross income R/ha R37 922 R33 510

2. Variable expenditures
Contracting R/ha 850 850
Crop insurance R/ha 2 124 1 877
Fertilizer R/ha 7 557 6 529
Lime R/ha 719 719
Seed R/ha 1 782 1 575
Fuel R/ha 1 739 1 725
Herbicide R/ha 376 529
Insecticide R/ha 181 282
Fungicides R/ha – –
Marketing costs R/ha 134 144
Repairs and maintenance R/ha 858 748
Casual labour R/ha – –
Irrigation: Water R/ha 1 122 956
Irrigation: Electricity R/ha 3 941 3 357
Aerial spray R/ha 320 320
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 808 705
Total variable expenditure R/ha R22 511 R20 316
Total variable expenditure R/ton R3 463 R3 386
3.1 Gross margin R/ha R15 411 R13 194
3.2 Gross margin R/ton R2 371 R2 199
Break-even yield T/ha 3.86 3.64
Break-even price R/ton R3 463 R3 386
Source: GSA, BFAP and Obaro, updated April 2023.
Gross margin comparison – Baseline: Limpopo
Graph showing baseline gross margin comparison for Limpopo irrigation

Gross margin per hectare: Limpopo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 5.75 6.00 6.25 6.50 6.75 7.00 7.25
R4 834 5 286 6 494 7 703 8 911 10 120 11 328 12 537
R5 084 6 723 7 994 9 265 10 536 11 807 13 078 14 349
R5 334 8 161 9 494 10 828 12 161 13 495 14 828 16 162
R5 584 9 598 10 994 12 390 13 786 15 182 16 578 17 974
R5 834 11 036 12 494 13 953 15 411 16 870 18 328 19 787
R6 084 12 473 13 994 15 515 17 036 18 557 20 078 21 599
R6 334 13 911 15 494 17 078 18 661 20 245 21 828 23 412
R6 584 15 348 16 994 18 640 20 286 21 932 23 578 25 224
R6 834 16 786 18 494 20 203 21 911 23 620 25 328 27 037
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R4 585 3 755 4 901 6 048 7 194 8 340 9 486 10 633
R4 835 5 068 6 276 7 485 8 694 9 903 11 111 12 320
R5 085 6 380 7 651 8 923 10 194 11 465 12 736 14 008
R5 335 7 693 9 026 10 360 11 694 13 028 14 361 15 695
R5 585 9 005 10 401 11 798 13 194 14 590 15 986 17 383
R5 835 10 318 11 776 13 235 14 694 16 153 17 611 19 070
R6 085 11 630 13 151 14 673 16 194 17 715 19 236 20 758
R6 335 12 943 14 526 16 110 17 694 19 278 20 861 22 445
R6 585 14 255 15 901 17 548 19 194 20 840 22 486 24 133

Notes

  • 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.
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