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	1.75	2.40	1.40
SAFEX simulated / derived price: 2024	R/ton	6 247	6 247	7 476	6 247	4 916
Total deductions	R/ton	1 115	974	172	951	98
– Transport differential	R/ton	817	817	–	827	98
– Grade differential	R/ton	176	124	–	–	–
– Marketing, handling and statutory levies	R/ton	123	33	172	124	100
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	71	748	–	–
Net farm gate price	R/ton	5 132	5 185	8 051	5 296	4 718
Gross income	R/ha	R15 397	R15 556	R14 090	R12 711	R6 605
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	44	45	40	36	–
Fertilizer	R/ha	3 223	3 086	3 311	2 594	1 180
Lime	R/ha	227	227	227	190	190
Seed	R/ha	873	654	1 329	878	939
Fuel	R/ha	716	732	710	701	637
Herbicide	R/ha	1 482	919	921	729	869
Insecticide	R/ha	188	135	590	131	157
Fungicides	R/ha	858	975	678	607	408
Marketing costs	R/ha	104	96	18	–	–
Repairs and maintenance	R/ha	857	775	882	826	474
Casual labour	R/ha	10	12	13	11	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R8 737	R7 811	R8 864	R6 741	R4 897
Total variable expenditure	R/ton	R2 912	R2 604	R5 065	R2 809	R3 498
3.1 Gross margin	R/ha	R6 660	R7 745	R5 226	R5 971	R1 708
3.2 Gross margin	R/ton	R2 220	R2 582	R2 986	R2 488	R1 220
Break-even yield	T/ha	1.70	1.51	1.10	1.27	1.04
Break-even price	R/ton	R2 912	R2 604	R5 065	R2 809	R3 498

Source: Overberg Agri, GSA and BFAP, updated April 2024.

Gross margin per hectare: Southern Cape – Overberg, Bredasdorp

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.