Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Bredasdorp region)

Area		Southern Cape: Bredasdorp
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	1.65	2.40	1.40
SAFEX simulated / derived price: 2023	R/ton	6 526	6 526	8 205	6 526	5 792
Total deductions	R/ton	1 037	995	27	865	99
– Transport differential	R/ton	750	750	–	832	99
– Grade differential	R/ton	186	172	–	–	–
– Marketing, handling and statutory levies	R/ton	100	73	27	33	35
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	67	821	–	–
Net farm gate price	R/ton	5 490	5 430	8 999	5 661	5 658
Gross income	R/ha	R16 469	R16 291	R14 848	R13 587	R7 921
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	47	47	43	39	–
Fertilizer	R/ha	3 703	3 532	3 812	2 968	1 297
Lime	R/ha	232	232	232	194	194
Seed	R/ha	838	645	2 028	731	889
Fuel	R/ha	799	816	791	781	710
Herbicide	R/ha	1 427	1 090	1 151	950	890
Insecticide	R/ha	383	214	545	161	165
Fungicides	R/ha	821	1 059	679	415	412
Marketing costs	R/ha	62	77	18	–	–
Repairs and maintenance	R/ha	771	748	610	853	845
Casual labour	R/ha	20	23	24	22	18
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	371
Total variable expenditure	R/ha	R9 257	R8 639	R10 080	R7 151	R5 458
Total variable expenditure	R/ton	R3 086	R2 880	R6 109	R2 980	R3 899
3.1 Gross margin	R/ha	R7 212	R7 652	R4 769	R6 436	R2 463
3.2 Gross margin	R/ton	R2 404	R2 551	R2 890	R2 681	R1 759
Break-even yield	T/ha	1.69	1.59	1.12	1.26	0.96
Break-even price	R/ton	R3 086	R2 880	R6 109	R2 980	R3 899

Source: Overberg Agri, GSA and BFAP, updated April 2023.

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

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.