2023/2024 ICB: Irrigation summer crops for North West (Brits)

OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2022/2023 SUMMER CROPS  //  Income and Cost Budgets

North West – irrigation

Income and cost budgets for maize, soybeans, sunflower and sorghum for North West (Brits region)
Area North West: Brits, Northam and Koedoeskop
Crop Maize Soybeans Sunlower Sorghum
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 3.80 3.00 7.00
SAFEX simulated price / producer price: 2024 R/ton 3 766 8 109 8 332 4 674
Total deductions R/ton 268 263 311 66
– Transport differential R/ton 189 140 214 –
– Grade differential R/ton 13 – – –
– Handling and commission R/ton 66 66 97 66
– Seed breeding and technology levy R/ton – 58 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 3 498 7 846 8 021 4 608
Gross income R/ha R41 976 R29 813 R24 063 R32 254

2. Variable expenditures
Contracting R/ha 922 965 – –
Crop insurance R/ha 1 427 1 640 578 821
Fertilizer R/ha 9 644 3 069 2 852 5 905
Lime R/ha 634 – – 412
Seed R/ha 5 193 2 281 1 087 1 075
Fuel R/ha 1 796 1 537 1 523 1 611
Herbicide R/ha 1 576 650 921 1 265
Insecticide / Fungicides R/ha 900 441 417 822
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 929 776 1 064 776
Casual labour R/ha 581 – – 162
Aerial spray R/ha – – – 250
Irrigation electricity R/ha 4 400 3 600 2 000 2 800
Water R/ha 1 283 1 049 583 816
Other expenditure: scheduling/irrigation equipment R&M R/ha 1 017 853 525 689
Total variable expenditure R/ha R30 301 R16 862 R11 548 R17 404
Total variable expenditure R/ton R2 525 R4 437 R3 849 R2 486
3.1 Gross margin R/ha R11 676 R12 951 R12 515 R14 850
3.2 Gross margin R/ton R973 R3 408 R4 172 R2 121
Break-even yield T/ha 8.66 2.15 1.44 3.78
Break-even price R/ton R2 525 R4 437 R3 849 R2 486
Source: BFAP, GSA, NWK and individual farmers – 2023.
Gross margin comparison – baseline: North West (Brits)
Figure 3.3: Gross margin comparison – Baseline: North West (Brits region) irrigation

Gross margin per hectare: North West (Brits)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R3 098 2 229 3 778 5 327 6 876 8 425 9 974 11 523
R3 198 3 279 4 878 6 477 8 076 9 675 11 274 12 873
R3 298 4 329 5 978 7 627 9 276 10 925 12 574 14 223
R3 398 5 379 7 078 8 777 10 476 12 175 13 874 15 573
R3 498 6 429 8 178 9 927 11 676 13 425 15 174 16 923
R3 598 7 479 9 278 11 077 12 876 14 674 16 474 18 273
R3 698 8 529 10 378 12 227 14 076 15 925 17 774 19 623
R3 798 9 579 11 478 13 377 15 276 17 175 19 074 20 973
R3 898 10 629 12 578 14 527 16 476 18 425 20 374 22 323
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.00 3.25 3.50 3.80 4.00 4.25 4.50
R7 446 5 474 7 336 9 197 11 431 12 920 14 781 16 643
R7 546 5 774 7 661 9 547 11 811 13 320 15 206 17 093
R7 646 6 074 7 986 9 897 12 191 13 720 15 631 17 543
R7 746 6 374 8 311 10 247 12 571 14 120 16 056 17 993
R7 846 6 674 8 636 10 597 12 951 14 520 16 481 18 443
R7 946 6 974 8 961 10 947 13 331 14 920 16 906 18 893
R8 046 7 274 9 286 11 297 13 711 15 320 17 331 19 343
R8 146 7 574 9 611 11 647 14 091 15 720 17 756 19 793
R8 246 7 874 9 936 11 997 14 471 16 120 18 181 20 243
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 2.30 2.55 2.80 3.00 3.30 3.55 3.80
R7 621 5 981 7 886 9 791 11 315 13 602 15 507 17 412
R7 721 6 211 8 141 10 071 11 615 13 932 15 862 17 792
R7 821 6 441 8 396 10 351 11 915 14 262 16 217 18 172
R7 921 6 671 8 651 10 631 12 215 14 592 16 572 18 552
R8 021 6 901 8 906 10 911 12 515 14 922 16 927 18 932
R8 121 7 131 9 161 11 191 12 815 15 252 17 282 19 312
R8 221 7 361 9 416 11 471 13 115 15 582 17 637 19 692
R8 321 7 591 9 671 11 751 13 415 15 912 17 992 20 072
R8 421 7 821 9 926 12 031 13 715 16 242 18 347 20 452
Soybeans margin above/below maize
Yield Price (R/ton)
R7 546 R7 646 R7 746 R7 846 R7 946 R8 046 R8 146
2.75 -7 788 -7 513 -7 238 -6 963 -6 688 -6 413 -6 138
3.00 -5 901 -5 601 -5 301 -5 001 -4 701 -4 401 -4 101
3.25 -4 015 -3 690 -3 365 -3 040 -2 715 -2 390 -2 065
3.50 -2 128 -1 778 -1 428 -1 078 -728 -378 -28
3.80 135 515 895 1 275 1 655 2 035 2 415
4.00 1 644 2 044 2 444 2 844 3 244 3 644 4 044
4.25 3 531 3 956 4 381 4 806 5 231 5 656 6 081
4.50 5 417 5 867 6 317 6 767 7 217 7 667 8 117
4.75 7 303 7 778 8 253 8 728 9 203 9 678 10 153

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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