Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 Limpopo Irrigation

2018/2019 Income and Cost Budgets

Limpopo (Loskop region) – irrigation

Income and cost budgets for maize and soybeans for Limpopo (Loskop)
Area Limpopo: Loskop
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250
Total deductions R/ton 309 59
– Transport differential R/ton 246
– Grade differential R/ton
– Marketing and handling R/ton 63 59
Price premiums R/ton
Net farm gate price R/ton 2 185 5 191
Gross income R/ha R26 225 R20 766

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 573 955
Fertilizer R/ha 6 419 2 360
Lime R/ha 416
Seed R/ha 3 898 2 224
Fuel R/ha 938 901
Herbicide R/ha 817 943
Insecticide R/ha 456 248
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 436 471
Casual labour R/ha
Aerial spray R/ha
Irrigation electricity R/ha 4 123 2 967
Water R/ha 970 698
Other expenditure: scheduling/irrigation equipment R&M R/ha 372 394
Total variable expenditure R/ha R20 419 R12 161
Total variable expenditure R/ton R1 702 R3 040
3.1 Gross margin R/ha R5 806 R8 605
3.2 Gross margin R/ton R484 R2 151
Source: BFAP, GSA and individual farmers – 2018.
Gross margin comparison – baseline: Limpopo (Loskop region)
Gross margin comparison – Baseline: Limpopo: Loskop Region

Gross margin per hectare: Limpopo (Loskop area)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 791 3 411 4 609 5 807 7 005 8 203 9 400 10 598
R4 891 3 736 4 959 6 182 7 405 8 628 9 850 11 073
R4 991 4 061 5 309 6 557 7 805 9 053 10 300 11 548
R5 091 4 386 5 659 6 932 8 205 9 478 10 750 12 023
R5 191 4 711 6 009 7 307 8 605 9 903 11 200 12 498
R5 291 5 036 6 359 7 682 9 005 10 328 11 650 12 973
R5 391 5 361 6 709 8 057 9 405 10 753 12 100 13 448
R5 491 5 686 7 059 8 432 9 805 11 178 12 550 13 923
R5 591 6 011 7 409 8 807 10 205 11 603 13 000 14 398
Soybeans margin above/below maize
Yield Price (R/ton)
R4 891 R4 991 R5 091 R5 191 R5 291 R5 391 R5 491
3.00 -3 293 -2 993 -2 693 -2 393 -2 093 -1 793 -1 493
3.25 -2 070 -1 745 -1 420 -1 095 -770 -445 -120
3.50 -847 -497 -147 203 553 903 1 253
3.75 376 751 1 126 1 501 1 876 2 251 2 626
4.00 1 599 1 999 2 399 2 799 3 199 3 599 3 999
4.25 2 822 3 247 3 672 4 097 4 522 4 947 5 372
4.50 4 044 4 494 4 944 5 394 5 844 6 294 6 744
4.75 5 267 5 742 6 217 6 692 7 167 7 642 8 117
5.00 6 490 6 990 7 490 7 990 8 490 8 990 9 490

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.
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