Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – normal potential regions)

Area		Southern Cape: Eastern Rûens (normal potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.50	2.50	1.75	2.20	1.50
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	R12 831	R12 964	R14 090	R11 652	R7 077
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	37	37	40	33	–
Fertilizer	R/ha	2 506	2 371	3 368	2 004	1 161
Lime	R/ha	227	227	227	190	–
Seed	R/ha	677	405	1 329	895	955
Fuel	R/ha	697	712	709	692	641
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	62	85	36	–	–
Repairs and maintenance	R/ha	675	662	730	662	382
Casual labour	R/ha	10	10	12	10	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	154	156	146	37	37
Total variable expenditure	R/ha	R7 572	R6 696	R8 786	R5 992	R4 617
Total variable expenditure	R/ton	R3 029	R2 678	R5 021	R2 723	R3 078
3.1 Gross margin	R/ha	R5 258	R6 268	R5 304	R5 660	R2 460
3.2 Gross margin	R/ton	R2 103	R2 507	R3 031	R2 573	R1 640
Break-even yield	T/ha	1.48	1.29	1.09	1.13	0.98
Break-even price	R/ton	R3 029	R2 678	R5 021	R2 723	R3 078

Source: SSK, GSA and BFAP, updated April 2024.

Gross margin per hectare: Southern Cape – Eastern Rûens (normal potential)

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.