Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 North West Lichtenburg Dryland

2018/2019 Income and Cost Budgets

North West (Lichtenburg) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Lichtenburg region
Area North West: Lichtenburg
Crop Maize Soybeans Sunflower Groundnuts
Production system Dryland

1. Income

Yield: deterministic Ton/ha 4.25 1.50 1.70 1.50
SAFEX simulated price / producer price: 2019 R/ton 2 393 5 250 5 174 7 447
Total deductions R/ton 260 60 271
– Transport differential R/ton 197 178
– Grade differential R/ton
– Marketing and handling R/ton 63 60 93
Price premiums R/ton
Net farm gate price R/ton 2 133 5 190 4 903 7 447
Gross income R/ha R9 064 R7 786 R8 336 R11 170

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 154 646 233 246
Fertilizer R/ha 2 121 1 179 1 262 701
Lime R/ha 325 124
Seed R/ha 678 621 437 1 430
Fuel R/ha 930 728 777 1 088
Herbicide R/ha 1 124 665 286 826
Insecticide R/ha 391 252 24 1 452
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 929 628 732 1 185
Casual labour R/ha 231 147 750
Aerial spray R/ha
Other expenditure R/ha 392
Total variable expenditure R/ha R6 884 R4 718 R3 898 R8 194
Total variable expenditure R/ton R1 620 R3 146 R2 293 R5 463
3.1 Gross margin R/ha R2 181 R3 067 R4 437 R2 975
3.2 Gross margin R/ton R513 R2 045 R2 610 R1 984
Source: BFAP, GSA, NWK and individual farmers – 2018.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Lichtenburg)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 790 -1 126 72 1 270 2 467 3 665 4 862 6 060
R4 890 -1 051 172 1 395 2 617 3 840 5 062 6 285
R4 990 -976 272 1 520 2 767 4 015 5 262 6 510
R5 090 -901 372 1 645 2 917 4 190 5 462 6 735
R5 190 -826 472 1 770 3 067 4 365 5 662 6 960
R5 290 -750 572 1 895 3 217 4 540 5 862 7 185
R5 390 -676 672 2 020 3 367 4 715 6 062 7 410
R5 490 -601 772 2 145 3 517 4 890 6 262 7 635
R5 590 -526 872 2 270 3 667 5 065 6 462 7 860
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.70 2.00 2.25 2.50
R4 503 605 1 731 2 857 3 757 5 108 6 234 7 360
R4 603 705 1 856 3 007 3 927 5 308 6 459 7 610
R4 703 805 1 981 3 157 4 097 5 508 6 684 7 860
R4 803 905 2 106 3 307 4 267 5 708 6 909 8 110
R4 903 1 005 2 231 3 457 4 437 5 908 7 134 8 360
R5 003 1 105 2 356 3 607 4 607 6 108 7 359 8 610
R5 103 1 205 2 481 3 757 4 777 6 308 7 584 8 860
R5 203 1 305 2 606 3 907 4 947 6 508 7 809 9 110
R5 303 1 405 2 731 4 057 5 117 6 708 8 034 9 360
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R7 047 -2 234 -248 1 739 3 725 5 712 7 699 9 685
R7 147 -2 159 -148 1 864 3 875 5 887 7 899 9 910
R7 247 -2 084 -48 1 989 4 025 6 062 8 099 10 135
R7 347 -2 009 52 2 114 4 175 6 237 8 299 10 360
R7 447 -1 934 152 2 239 4 325 6 412 8 499 10 585
R7 547 -1 859 252 2 364 4 475 6 587 8 699 10 810
R7 647 -1 784 352 2 489 4 625 6 762 8 899 11 035
R7 747 -1 709 452 2 614 4 775 6 937 9 099 11 260
R7 847 -1 634 552 2 739 4 925 7 112 9 299 11 485
Soybeans margin above/below maize
Yield Price (R/ton)
R4 890 R4 990 R5 090 R5 190 R5 290 R5 390 R5 490
0.50 -4 454 -4 404 -4 354 -4 304 -4 254 -4 204 -4 154
0.75 -3 231 -3 156 -3 081 -3 006 -2 931 -2 856 -2 781
1.00 -2 009 -1 909 -1 809 -1 709 -1 609 -1 509 -1 409
1.25 -786 -661 -536 -411 -286 -161 -36
1.50 436 586 736 886 1 036 1 186 1 336
1.75 1 659 1 834 2 009 2 184 2 359 2 534 2 709
2.00 2 882 3 082 3 282 3 482 3 682 3 882 4 082
2.25 4 104 4 329 4 554 4 779 5 004 5 229 5 454
2.50 5 327 5 577 5 827 6 077 6 327 6 577 6 827

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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