Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 Northern Cape Irrigation

2018/2019 Income and Cost Budgets

Northern Cape – irrigation

Income and cost budgets for maize, soybeans, groundnuts and sunflower (oil) for the Northern Cape
Area Northern Cape
Crop Maize Soybeans Groundnuts Sunflower (oil)
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 13.50 4.00 3.00 3.00
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250 8 750 5 174
Total deductions R/ton 355 59
– Transport differential R/ton 292
– Grade differential R/ton
– Marketing and handling R/ton 63 59
Price premiums R/ton
Net farm gate price R/ton 2 139 5 191 8 750 5 174
Gross income R/ha R28 882 R20 766 R28 275 R15 523

2. Variable expenditures

Contracting R/ha 3 250 1 425
Crop insurance R/ha 578 2 118 283 497
Fertilizer R/ha 9 760 6 019 7 475 5 404
Lime R/ha 630
Seed R/ha 4 727 1 668 3 205 904
Fuel R/ha 1 023 431 880 684
Herbicide R/ha 238 848 277 133
Insecticide R/ha 3 183 248 3 750 230
Fungicides R/ha
Marketing costs R/ha
Repairs and maintenance R/ha 510 248 678 619
Casual labour R/ha 154
Aerial spray R/ha 400
Irrigation electricity R/ha 3 152 3 152 2 833 2 239
Water R/ha 1 049 1 049 942 745
Other expenditure: scheduling/irrigation equipment R&M R/ha 532 532 2 132 532
Total variable expenditure R/ha R25 152 R16 313 R26 488 R13 411
Total variable expenditure R/ton R1 863 R4 078 R8 829 R4 470
3.1 Gross margin R/ha R3 730 R4 453 R1 787 R2 111
3.2 Gross margin R/ton R276 R1 113 R596 R704
Source: BFAP, GSA and GWK – 2017.
Gross margin comparison – baseline: Northern Cape
Gross margin comparison - Baseline: Northern Cape Irrigation

Gross margin per hectare: Northern Cape irrigation

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 791 -741 457 1 655 2 853 4 051 5 249 6 446
R4 891 -416 807 2 030 3 253 4 476 5 699 6 921
R4 991 -91 1 157 2 405 3 653 4 901 6 149 7 396
R5 091 234 1 507 2 780 4 053 5 326 6 599 7 871
R5 191 559 1 857 3 155 4 453 5 751 7 049 8 346
R5 291 884 2 207 3 530 4 853 6 176 7 499 8 821
R5 391 1 534 2 557 3 905 5 253 6 601 7 949 9 296
R5 491 1 534 2 907 4 280 5 653 7 026 8 399 9 771
R5 591 1 859 3 257 4 655 6 053 7 451 8 849 10 246
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.50 4.00 4.50
R8 350 -5 675 -3 363 -1 050 1 262 5 887 10 512 15 137
R8 450 -5 450 -3 113 -775 1 562 6 237 10 912 15 587
R8 550 -5 225 -2 863 -500 1 862 6 587 11 312 16 037
R8 650 -5 000 -2 613 -225 2 162 6 937 11 712 16 487
R8 750 -4 775 -2 363 50 2 462 7 287 12 112 16 937
R8 850 -4 550 -2 113 325 2 762 7 637 12 512 17 387
R8 950 -4 325 -1 863 600 3 062 7 987 12 912 17 837
R9 050 -4 100 -1 613 875 3 362 8 337 13 312 18 287
R9 150 -3 875 -1 363 1 150 3 662 8 687 13 712 18 737
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.50 4.00 4.50
R4 774 -2 669 -1 476 -282 911 3 298 5 686 8 073
R4 874 -2 444 -1 226 -7 1 211 3 648 6 086 8 523
R4 974 -2 219 -976 268 1 511 3 998 6 486 8 973
R5 074 -1 994 -726 543 1 811 4 348 6 886 9 423
R5 174 -1 769 -476 818 2 111 4 698 7 286 9 873
R5 274 -1 544 -226 1 093 2 411 5 048 7 686 10 323
R5 374 -1 319 24 1 368 2 711 5 398 8 086 10 773
R5 474 -1 094 274 1 643 3 011 5 748 8 486 11 223
R5 574 -869 524 1 918 3 311 6 098 8 886 11 673
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 -5 369 -5 069 -4 769 -4 469 -4 169 -3 869 -3 569
3.25 -4 146 -3 821 -3 496 -3 171 -2 846 -2 521 -2 196
3.50 -2 923 -2 573 -2 223 -1 873 -1 523 -1 173 -823
3.75 -1 700 -1 325 -950 -575 -200 175 550
4.00 -477 -77 323 723 1 123 1 523 1 923
4.25 745 1 170 1 595 2 020 2 445 2 870 3 295
4.50 1 968 2 418 2 868 3 318 3 768 4 218 4 668
4.75 3 191 3 666 4 141 4 616 5 091 5 566 6 041
5.00 4 414 4 914 5 414 5 914 6 414 6 914 7 414

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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