Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 Eastern Free State Dryland

2018/2019 Income and Cost Budgets

Eastern Free State – dryland

Income and cost budgets for maize, soybeans, sunflower and dry beans for Eastern Free State
Crop Maize Soybeans Sunflower Dry beans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 5.50 2.00 1.80 1.50
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250 5 174 12 500
Total deductions R/ton 313 62 363 62
– Transport differential R/ton 253 270
– Grade differential R/ton
– Marketing and handling R/ton 60 62 93 62
Price premiums R/ton
Net farm gate price R/ton 2 181 5 188 4 811 12 438
Gross income R/ha R11 998 R10 377 R8 660 R18 657

2. Variable expenditures

Contracting R/ha 1 225
Crop insurance R/ha 360 1 038 372 750
Fertilizer R/ha 3 017 1 034 1 497 1 651
Lime R/ha 424 451
Seed R/ha 1 388 1 035 509 3 125
Fuel R/ha 968 661 690 607
Herbicide R/ha 1 027 1 051 764 1 374
Insecticide R/ha 95 259 128 1 264
Fungicides R/ha 395 230
Marketing costs R/ha
Repairs and maintenance R/ha 985 698 807 676
Casual labour R/ha 200 399
Aerial spray R/ha
Other expenditure R/ha 54 135 96
Total variable expenditure R/ha R8 858 R6 061 R4 902 R11 617
Total variable expenditure R/ton R1 611 R3 031 R2 723 R7 745
3.1 Gross margin R/ha R3 140 R4 315 R3 758 R7 040
3.2 Gross margin R/ton R571 R2 158 R2 088 R4 693
Source: BFAP, GSA and individual farmers – 2018.
Gross margin comparison – baseline: Eastern Free State
Gross margin comparison - Baseline: Eastern Free State

Gross margin per hectare: Eastern Free State

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 788 -76 1 121 2 318 3 515 4 713 5 910 7 107
R4 888 49 1 271 2 493 3 715 4 938 6 160 7 382
R4 988 174 1 421 2 668 3 915 5 163 6 410 7 657
R5 088 299 1 571 2 843 4 115 5 388 6 660 7 932
R5 188 424 1 721 3 018 4 315 5 613 6 910 8 207
R5 288 549 1 871 3 193 4 515 5 838 7 160 8 482
R5 388 674 2 021 3 368 4 715 6 063 7 410 8 757
R5 488 799 2 171 3 543 4 915 6 288 7 660 9 032
R5 588 924 2 321 3 718 5 115 6 513 7 910 9 307
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.80 2.00 2.25 2.50
R4 411 -491 612 1 715 3 038 3 921 5 023 6 126
R4 511 -391 737 1 865 3 218 4 121 5 248 6 376
R4 611 -291 862 2 015 3 398 4 321 5 473 6 626
R4 711 -191 987 2 165 3 578 4 521 5 698 6 876
R4 811 -91 1 112 2 315 3 758 4 721 5 923 7 126
R4 911 9 1 237 2 465 3 938 4 921 6 148 7 376
R5 011 109 1 362 2 615 4 118 5 121 6 373 7 626
R5 111 209 1 487 2 765 4 298 5 321 6 598 7 876
R5 211 309 1 612 2 915 4 478 5 521 6 823 8 126
Soybeans margin above/below maize
Yield Price (R/ton)
R4 888 R4 988 R5 088 R5 188 R5 288 R5 388 R5 488
1.00 -4 312 -4 212 -4 112 -4 012 -3 912 -3 812 -3 712
1.25 -3 090 -2 965 -2 840 -2 715 -2 590 -2 465 -2 340
1.50 -1 868 -1 718 -1 568 -1 418 -1 268 -1 118 -968
1.75 -646 -471 -296 -121 54 229 404
2.00 576 776 976 1 176 1 376 1 576 1 776
2.25 1 798 2 023 2 248 2 473 2 698 2 923 3 148
2.50 3 020 3 270 3 520 3 770 4 020 4 270 4 520
2.75 4 242 4 517 4 792 5 067 5 342 5 617 5 892
3.00 5 464 5 764 6 064 6 364 6 664 6 964 7 264

Notes

  • 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 cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
Subscribe: receive ICBs via e-mail