Southern Cape – dryland

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

Area		Southern Cape: Eastern Rûens (high potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.00	3.00	2.10	2.50	1.70
SAFEX simulated / derived price: 2025	R/ton	6 327	6 327	7 637	6 327	5 440
Total deductions	R/ton	1 090	1 119	29	924	194
– Transport differential	R/ton	800	800	–	800	94
– Grade differential	R/ton	168	286	–	–	–
– Marketing, handling and statutory levies	R/ton	123	33	29	124	100
Price premiums / Canola back-payment	R/ton	–	74	764	–	–
Net farm gate price	R/ton	5 237	5 387	8 371	5 403	5 246
Gross income	R/ha	R15 711	R16 161	R17 580	R13 509	R8 918
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	45	46	50	39	–
Fertilizer	R/ha	2 928	2 884	3 476	2 559	1 363
Lime	R/ha	262	262	262	220	–
Seed	R/ha	705	679	1 685	1 267	1 118
Fuel	R/ha	750	767	754	738	680
Herbicide	R/ha	1 682	1 369	1 054	810	883
Insecticide	R/ha	258	186	625	136	165
Fungicides	R/ha	699	1 172	685	508	575
Marketing costs	R/ha	78	106	4344	–	–
Repairs and maintenance	R/ha	962	950	1 068	793	416
Casual labour	R/ha	18	24	22	15	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	36	165	153	123	123
Total variable expenditure	R/ha	R8 424	R8 610	R9 880	R7 206	R5 329
Total variable expenditure	R/ton	R2 808	R2 870	R4 705	R2 883	R3 135
3.1 Gross margin	R/ha	R7 287	R7 551	R7 700	R6 302	R3 588
3.2 Gross margin	R/ton	R2 429	R2 517	R3 666	R2 521	R2 111
Break-even yield	T/ha	1.61	1.60	1.18	1.33	1.02
Break-even price	R/ton	R2 808	R2 870	R4 705	R2 883	R3 135

Source: SSK, GSA and BFAP, updated April 2025.

Gross margin per hectare: Southern Cape – Eastern Rûens (high 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.