Southern Cape – dryland

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

Area		Southern Cape: Caledon
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.40	3.40	2.10	2.60	1.75
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	198
– 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	R/ton	–	71	748	–	–
Net farm gate price	R/ton	5 132	5 185	8 051	5 296	4 718
Gross income	R/ha	R17 450	R17 630	R16 908	R13 771	R8 256
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	50	51	49	40	–
Fertilizer	R/ha	3 425	3 459	3 350	2 829	1 286
Lime	R/ha	227	227	227	190	190
Seed	R/ha	873	708	1 445	878	1 174
Fuel	R/ha	728	748	719	708	645
Herbicide	R/ha	1 216	888	1 086	847	797
Insecticide	R/ha	189	165	609	140	178
Fungicides	R/ha	871	1 279	667	509	478
Marketing costs	R/ha	118	108	21	–	–
Repairs and maintenance	R/ha	858	833	858	759	471
Casual labour	R/ha	11	12	13	11	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	157	163	152	121	121
Total variable expenditure	R/ha	R8 725	R8 641	R9 195	R7 033	R5 347
Total variable expenditure	R/ton	R2 566	R2 542	R4 379	R2 705	R3 055
3.1 Gross margin	R/ha	R8 725	R8 989	R7 713	R6 738	R2 910
3.2 Gross margin	R/ton	R2 566	R2 644	R3 673	R2 592	R1 663
Break-even yield	T/ha	1.70	1.67	1.14	1.33	1.13
Break-even price	R/ton	R2 566	R2 542	R4 379	R2 705	R3 055

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

Gross margin per hectare: Southern Cape – Overberg, Caledon

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.