2023/2024 ICB: Dryland soybean and maize in Mpumalanga

OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2023/2024 SUMMER CROPS  //  Income and Cost Budgets

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 6.50 2.50 4.50 6.00 2.00
SAFEX simulated price / producer price: 2024 R/ton 3 766 8 109 4 674 3 766 8 109
Total deductions R/ton 396 353 66 458 400
– Transport differential R/ton 315 234 – 377 281
– Grade differential R/ton 18 – – 18 –
– Handling and commission R/ton 63 62 66 63 62
– Seed breeding and technology levy R/ton – 58 – – 58
Price premiums R/ton – – – – –
Net farm gate price R/ton 3 370 7 756 4 608 3 308 7 709
Gross income R/ha R21 905 R19 389 R20 735 R19 848 R15 417

2. Variable expenditures
Contracting R/ha – – – – –
Crop insurance R/ha 832 1 590 622 754 1 264
Fertilizer R/ha 4 978 1 603 2 940 4 744 1 458
Lime R/ha 735 – 735 735 –
Seed R/ha 3 338 1 538 941 2 967 1 428
Fuel R/ha 1 457 897 1 385 1 434 869
Herbicide R/ha 1 479 1 520 1 250 1 479 1 474
Insecticide / Fungicides R/ha 931 407 623 931 388
Marketing costs R/ha – – – – –
Repairs and maintenance R/ha 919 708 723 820 700
Casual labour R/ha 315 – 104 290 –
Aerial spray R/ha – – – – –
Other expenditure R/ha – – – – –
Total variable expenditure R/ha R14 983 R8 264 R9 323 R14 155 R7 581
Total variable expenditure R/ton R2 305 R3 305 R2 072 R2 359 R3 791
3.1 Gross margin R/ha R6 922 R11 126 R11 412 R5 693 R7 836
3.2 Gross margin R/ton R1 065 R4 450 R2 536 R949 R3 918
Break-even yield T/ha 4.45 1.07 2.02 4.28 0.98
Break-even price R/ton R2 305 R3 305 R2 072 R2 359 R3 791
Source: BFAP, GSA and individual farmers – 2023.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison - Baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Maize sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 5.00 5.50 6.00 6.50 7.00 7.50 8.00
R2 970 -133 1 352 2 837 4 322 5 807 7 292 8 776
R3 070 367 1 902 3 437 4 972 6 507 8 042 9 576
R3 170 867 2 452 4 037 5 622 7 207 8 792 10 376
R3 270 1 367 3 002 4 637 6 272 7 907 9 542 11 176
R3 370 1 867 3 552 5 237 6 922 8 607 10 292 11 976
R3 470 2 367 4 102 5 837 7 572 9 307 11 042 12 776
R3 570 2 867 4 652 6 437 8 222 10 007 11 792 13 576
R3 670 3 367 5 202 7 037 8 872 10 707 12 542 14 376
R3 770 3 867 5 752 7 637 9 522 11 407 13 292 15 176
Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R7 356 4 609 6 448 8 287 10 126 11 965 13 803 15 642
R7 456 4 784 6 648 8 512 10 376 12 240 14 103 15 967
R7 556 4 959 6 848 8 737 10 626 12 515 14 403 16 292
R7 656 5 134 7 048 8 962 10 876 12 790 14 703 16 617
R7 756 5 309 7 248 9 187 11 126 13 065 15 003 16 942
R7 856 5 484 7 448 9 412 11 376 13 340 15 303 17 267
R7 956 5 659 7 648 9 637 11 626 13 615 15 603 17 592
R8 056 5 834 7 848 9 862 11 876 13 890 15 903 17 917
R8 156 6 009 8 048 10 087 12 126 14 165 16 203 18 242
Maize sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 4.50 5.00 5.50 6.00 6.50 7.00 7.50
R2 908 -1 069 385 1 839 3 293 4 747 6 201 7 655
R3 008 -619 885 2 389 3 893 5 397 6 901 8 405
R3 108 -169 1 385 2 939 4 493 6 047 7 601 9 155
R3 208 281 1 885 3 489 5 093 6 697 8 301 9 905
R3 308 731 2 385 4 039 5 693 7 347 9 001 10 655
R3 408 1 181 2 885 4 589 6 293 7 997 9 701 11 405
R3 508 1 631 3 385 5 139 6 893 8 647 10 401 12 155
R3 608 2 081 3 885 5 689 7 493 9 297 11 101 12 905
R3 708 2 531 4 385 6 239 8 093 9 947 11 801 13 655
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R7 309 1 555 3 382 5 209 7 036 8 863 10 690 12 518
R7 409 1 680 3 532 5 384 7 236 9 088 10 940 12 793
R7 509 1 805 3 682 5 559 7 436 9 313 11 190 13 068
R7 609 1 930 3 832 5 734 7 636 9 538 11 440 13 343
R7 709 2 055 3 982 5 909 7 836 9 763 11 690 13 618
R7 809 2 180 4 132 6 084 8 036 9 988 11 940 13 893
R7 909 2 305 4 282 6 259 8 236 10 213 12 190 14 168
R8 009 2 430 4 432 6 434 8 436 10 438 12 440 14 443
R8 109 2 555 4 582 6 609 8 636 10 663 12 690 14 718
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R7 456 R7 556 R7 656 R7 756 R7 856 R7 956 R8 056
1.50 -4 002 -3 852 -3 702 -3 552 -3 402 -3 252 -3 102
1.75 -2 138 -1 963 -1 788 -1 613 -1 438 -1 263 -1 088
2.00 -274 -74 126 326 526 726 926
2.25 1 590 1 815 2 040 2 265 2 490 2 715 2 940
2.50 3 454 3 704 3 954 4 204 4 454 4 704 4 954
2.75 5 318 5 593 5 868 6 143 6 418 6 693 6 968
3.00 7 182 7 482 7 782 8 082 8 382 8 682 8 982
3.25 9 046 9 371 9 696 10 021 10 346 10 671 10 996
3.50 10 910 11 260 11 610 11 960 12 310 12 660 13 010
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R7 409 R7 509 R7 609 R7 709 R7 809 R7 909 R8 009
1.00 -5 866 -5 766 -5 666 -5 566 -5 466 -5 366 -5 266
1.25 -4 013 -3 888 -3 763 -3 638 -3 513 -3 388 -3 263
1.50 -2 161 -2 011 -1 861 -1 711 -1 561 -1 411 -1 261
1.75 -309 -134 41 216 391 566 741
2.00 1 543 1 743 1 943 2 143 2 343 2 543 2 743
2.25 3 395 3 620 3 845 4 070 4 295 4 520 4 745
2.50 5 247 5 497 5 747 5 997 6 247 6 497 6 747
2.75 7 100 7 375 7 650 7 925 8 200 8 475 8 750
3.00 8 952 9 252 9 552 9 852 10 152 10 452 10 752

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.
  • 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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