OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

WINTER CROPS  //  2024 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: 2024 R/ton 6 247 6 247
Total deductions R/ton 695 601
– Transport differential R/ton 352 352
– Grade differential R/ton 239 173
– Marketing, handling and statutory levies R/ton 104 75
Price premiums / Canola back-payment R/ton – 71
Net farm gate price R/ton 5 552 5 374
Gross income R/ha R36 089 R32 246

2. Variable expenditures
Contracting R/ha 850 850
Crop insurance R/ha 2 021 1 806
Fertilizer R/ha 6 307 5 352
Lime R/ha 702 702
Seed R/ha 2 498 2 025
Fuel R/ha 1 560 1 547
Herbicide R/ha 376 529
Insecticide R/ha 119 282
Fungicides R/ha – –
Marketing costs R/ha 141 152
Repairs and maintenance R/ha 905 789
Casual labour R/ha – –
Irrigation: Water R/ha 1 810 1 542
Irrigation: Electricity R/ha 4 320 3 680
Aerial spray R/ha 320 320
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 1 134 983
Total variable expenditure R/ha R23 063 R20 558
Total variable expenditure R/ton R3 548 R3 426
3.1 Gross margin R/ha R13 025 R11 688
3.2 Gross margin R/ton R2 004 R1 948
Break-even yield T/ha 4.15 3.83
Break-even price R/ton R3 548 R3 426
Source: GSA, BFAP and Obaro, updated April 2024.
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 552 3 111 4 249 5 387 6 525 7 664 8 802 9 940
R4 802 4 549 5 749 6 950 8 150 9 351 10 552 11 752
R5 052 5 986 7 249 8 512 9 775 11 039 12 302 13 565
R5 302 7 424 8 749 10 075 11 400 12 726 14 052 15 377
R5 552 8 861 10 249 11 637 13 025 14 414 15 802 17 190
R5 802 10 299 11 749 13 200 14 650 16 101 17 552 19 002
R6 052 11 736 13 249 14 762 16 275 17 789 19 302 20 815
R6 302 13 174 14 749 16 325 17 900 19 476 21 052 22 627
R6 552 14 611 16 249 17 887 19 525 21 164 22 802 24 440
Barley sensitivity analysis
Yield (t/ha)
Producers price 5.25 5.50 5.75 6.00 6.25 6.50 6.75
R4 374 2 407 3 500 4 594 5 688 6 781 7 875 8 968
R4 624 3 719 4 875 6 032 7 188 8 344 9 500 10 656
R4 874 5 032 6 250 7 469 8 688 9 906 11 125 12 343
R5 124 6 344 7 625 8 907 10 188 11 469 12 750 14 031
R5 374 7 657 9 000 10 344 11 688 13 031 14 375 15 718
R5 624 8 969 10 375 11 782 13 188 14 594 16 000 17 406
R5 874 10 282 11 750 13 219 14 688 16 156 17 625 19 093
R6 124 11 594 13 125 14 657 16 188 17 719 19 250 20 781
R6 374 12 907 14 500 16 094 17 688 19 281 20 875 22 468

Notes

  • Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
  • The canola back-payment assumes 10% of contracted price.
  • 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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