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

2018 Income and Cost Budgets

Northern Cape – irrigation

Income and cost budgets for wheat, barley and canola for Northern Cape
Area Northern Cape
Crop Wheat Barley Canola
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 8.00 7.50 4.00
SAFEX simulated / derived price: 2018 R/ton 3 813 3 813 4 613
Total deductions R/ton 623 599 4
– Transport differential R/ton 450 450
– Grade differential R/ton 66 96
– Marketing, handling and statutory levies R/ton 107 53 4
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 461
Net farm gate price R/ton 3 190 3 191 5 070
Gross income R/ha R25 522 R23 931 R20 280

2. Variable expenditures

Contracting R/ha 1 300 1 300 1 400
Crop insurance R/ha 2 297 2 154 608
Fertilizer R/ha 8 354 7 147 4 201
Lime R/ha 1 307 1 307
Seed R/ha 1 300 1 200 844
Fuel R/ha 730 731 730
Herbicide R/ha 392 392 1 337
Insecticide R/ha 1 087 148 631
Fungicides R/ha 487 1 256
Marketing costs R/ha
Repairs and maintenance R/ha 677 677 677
Casual labour R/ha
Irrigation: Water R/ha 718 718 718
Irrigation: Electricity R/ha 2 474 2 474 2 474
Aerial spray R/ha
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 532 532 532
Total variable expenditure R/ha R21 168 R20 121 R14 617
Total variable expenditure R/ton R2 646 R2 683 R3 654
3.1 Gross margin R/ha R4 353 R3 810 R5 663
3.2 Gross margin R/ton R544 R508 R1 416
Source: GWK, GSA and BFAP, 2018.
Gross margin comparison – Baseline: Northern Cape
Gross margin comparison – Baseline: Northern Cape irrigation

Gross margin per hectare: Northern Cape

Wheat sensitivity analysis
Yield (t/ha)
Producers price 7.25 7.50 7.75 8.00 8.25 8.50 8.75
R2 190 -5 289.17 -4 742 -4 194 -3 647 -3 099 -2 551 -2 004
R2 440 -3 477 -2 867 -2 257 -1 647 -1 036 -426 184
R2 690 -1 664 -992 -319 353 1 026 1 699 2 371
R2 940 148 883 1 618 2 353 3 089 3 824 4 559
R3 190 1 961 2 758 3 556 4 353 5 151 5 949 6 746
R3 440 3 773 4 633 5 493 6 353 7 214 8 074 8 934
R3 690 5 586 6 508 7 431 8 353 9 276 10 199 11 121
R3 940 7 398 8 383 9 368 10 353 11 339 12 324 13 309
R4 190 9 211 10 258 11 306 12 353 13 401 14 449 15 496
Barley sensitivity analysis
Yield (t/ha)
Producers price 6.75 7.00 7.25 7.50 7.75 8.00 8.25
R2 191 -5 333 -4 785 -4 238 -3 690 -3 142 -2 595 -2 047
R2 441 -3 646 -3 035 -2 425 -1 815 -1 205 -595 16
R2 691 -1 958 -1 285 -613 60 733 1 405 2 078
R2 941 -271 465 1 200 1 935 2 670 3 405 4 141
R3 191 1 417 2 215 3 012 3 810 4 608 5 405 6 203
R3 441 3 104 3 965 4 825 5 685 6 545 7 405 8 266
R3 691 4 792 5 715 6 637 7 560 8 483 9 405 10 328
R3 941 6 479 7 465 8 450 9 435 10 420 11 405 12 391
R4 191 8 167 9 215 10 262 11 310 12 358 13 405 14 453
Canola sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 070 -1 390 -372 645 1 663 2 680 3 698 4 715
R4 320 -577 503 1 583 2 663 3 743 4 823 5 903
R4 570 235 1 378 2 520 3 663 4 805 5 948 7 090
R4 820 1 048 2 253 3 458 4 663 5 868 7 073 8 278
R5 070 1 860 3 128 4 395 5 663 6 930 8 198 9 465
R5 320 2 673 4 003 5 333 6 663 7 993 9 323 10 653
R5 570 3 485 4 878 6 270 7 663 9 055 10 448 11 840
R5 820 4 298 5 753 7 208 8 663 10 118 11 573 13 028
R6 070 5 110 6 628 8 145 9 663 11 180 12 698 14 215
Canola margin above/below wheat
Yield Price (R/ton)
R4 320 R4 570 R4 820 R5 070 R5 320 R5 570 R5 820
3.00 -6 011 -5 261 -4 511 -3 761 -3 011 -2 261 -1 511
3.25 -4 931 -4 118 -3 306 -2 493 -1 681 -868 -56
3.50 -3 851 -2 976 -2 101 -1 226 -351 524 1 399
3.75 -2 771 -1 833 -896 42 979 1 917 2 854
4.00 -1 691 -691 309 1 309 2 309 3 309 4 309
4.25 -611 452 1 514 2 577 3 639 4 702 5 764
4.50 469 1 594 2 719 3 844 4 969 6 094 7 219
4.75 1 549 2 737 3 924 5 112 6 299 7 487 8 674
5.00 2 629 3 879 5 129 6 379 7 629 8 879 10 129

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 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.
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