Income & Cost Budgets / 2018/2019 / Winter Crops / Icb 2018 Southern Cape Caledon Dryland

2018 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Caledon region)
Area Southern Cape: Caledon
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.20 3.20 1.60 3.00 1.30
SAFEX simulated / derived price: 2018 R/ton 3 813 3 813 4 613 2 900 3 250
Total deductions R/ton 726 709 4
– Transport differential R/ton 560 560
– Grade differential R/ton 60 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 3 087 3 084 5 070 2 900 3 250
Gross income R/ha R9 878 R9 869 R8 112 R8 700 R4 225

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 28 33 27 29 14
Fertilizer R/ha 2 349 2 219 2 021 1 910 424
Lime R/ha 94 94 94 94 94
Seed R/ha 646 560 1 112 400 834
Fuel R/ha 657 633 584 645 596
Herbicide R/ha 654 630 630 410 720
Insecticide R/ha 160 190 190 120 163
Fungicides R/ha 640 960 390 400 440
Marketing costs R/ha 37 47 13
Repairs and maintenance R/ha 636 636 596 634 607
Casual labour R/ha 13 13 13 13 13
Aerial spray R/ha
Other expenditure R/ha 115 120 110 93 93
Total variable expenditure R/ha R6 029 R6 134 R5 780 R4 747 R3 998
Total variable expenditure R/ton R1 884 R1 917 R3 613 R1 582 R3 075
3.1 Gross margin R/ha R3 849 R3 735 R2 332 R3 953 R227
3.2 Gross margin R/ton R1 203 R1 167 R1 457 R1 318 R175
Source: Overberg Agri, GSA and BFAP, April 2018.
Gross margin comparison – Baseline: Southern Cape (Caledon region)
Gross margin comparison – Baseline: Southern Cape (Caledon region)

Gross margin per hectare: Southern Cape – Overberg, Caledon

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 3.00 3.20 3.50 3.75 4.00
R2 087 -1 333 -812 232 649 1 275 1 797 2 319
R2 337 -771 -187 982 1 449 2 150 2 735 3 319
R2 587 -208 438 1 732 2 249 3 025 3 672 4 319
R2 837 354 1 063 2 482 3 049 3 900 4 610 5 319
R3 087 917 1 688 3 232 3 849 4 775 5 547 6 319
R3 337 1 479 2 313 3 982 4 649 5 650 6 485 7 319
R3 587 2 042 2 938 4 732 5 449 6 525 7 422 8 319
R3 837 2 604 3 563 5 482 6 249 7 400 8 360 9 319
R4 087 3 167 4 188 6 232 7 049 8 275 9 297 10 319
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 3.00 3.20 3.50 3.75 4.00
R2 084 -1 444 -923 119 535 1 161 1 682 2 203
R2 334 -882 -298 869 1 335 2 036 2 619 3 203
R2 584 -319 327 1 619 2 135 2 911 3 557 4 203
R2 834 243 952 2 369 2 935 3 786 4 494 5 203
R3 084 806 1 577 3 119 3 735 4 661 5 432 6 203
R3 334 1 368 2 202 3 869 4 535 5 536 6 369 7 203
R3 584 1 931 2 827 4 619 5 335 6 411 7 307 8 203
R3 834 2 493 3 452 5 369 6 135 7 286 8 244 9 203
R4 084 3 056 4 077 6 119 6 935 8 161 9 182 10 203
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.40 1.60 2.00 2.50 2.75
R4 070 -1 710 -693 -82 732 2 360 4 395 5 412
R4 320 -1 460 -380 268 1 132 2 860 5 020 6 100
R4 570 -1 210 -68 618 1 532 3 360 5 645 6 787
R4 820 -960 245 968 1 932 3 860 6 270 7 475
R5 070 -710 557 1 318 2 332 4 360 6 895 8 162
R5 320 -460 870 1 668 2 732 4 860 7 520 8 850
R5 570 -210 1 182 2 018 3 132 5 360 8 145 9 537
R5 820 40 1 495 2 368 3 532 5 860 8 770 10 225
R6 070 290 1 807 2 718 3 932 6 360 9 395 10 912
Canola margin above/below wheat
Yield Price (R/ton)
R4 320 R4 570 R4 820 R5 070 R5 320 R5 570 R5 820
0.75 -6 389 -6 202 -6 014 -5 827 -5 639 -5 452 -5 264
1.00 -5 309 -5 059 -4 809 -4 559 -4 309 -4 059 -3 809
1.25 -4 229 -3 917 -3 604 -3 292 -2 979 -2 667 -2 354
1.40 -3 581 -3 231 -2 881 -2 531 -2 181 -1 831 -1 481
1.60 -2 717 -2 317 -1 917 -1 517 -1 117 -717 -317
2.00 -989 -489 11 511 1 011 1 511 2 011
2.50 1 171 1 796 2 421 3 046 3 671 4 296 4 921
2.75 2 251 2 938 3 626 4 313 5 001 5 688 6 376
3.00 3 331 4 081 4 831 5 581 6 331 7 081 7 831

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.
Subscribe: receive ICBs via e-mail