INCOME & COST BUDGETS  |  Summer Crops 2020/2021

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
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 13.50 4.00 3.50 3.20
SAFEX simulated price / producer price: 2021 R/ton 2 633 5 897 9 930 5 979
Total deductions R/ton 348 143 63 461
– Transport differential R/ton 285
– Grade differential R/ton
– Marketing and handling R/ton 63 143 63 461
Price premiums R/ton
Net farm gate price R/ton 2 285 5 754 9 867 5 518
Gross income R/ha R30 844 R23 017 R36 035 R17 657

2. Variable expenditures

Contracting R/ha 1 470 1 470 3 520 1 470
Crop insurance R/ha 308 1 381 360 883
Fertilizer R/ha 8 564 5 234 6 675 4 597
Lime R/ha 653 790
Seed R/ha 4 975 1 881 3 443 811
Fuel R/ha 926 647 1 010 985
Herbicide R/ha 663 382 1 110 144
Insecticide / Fungicides R/ha 2 397 1 582 3 808 255
Marketing costs R/ha
Repairs and maintenance R/ha 526 252 686 696
Casual labour R/ha 168
Aerial spray R/ha 450
Irrigation electricity R/ha 3 733 3 733 3 841 2 651
Water R/ha 1 180 1 180 1 214 838
Other expenditure: scheduling/irrigation equipment R&M R/ha 835 820 2 920 820
Total variable expenditure R/ha R26 680 R18 561 R29 546 R14 150
Total variable expenditure R/ton R1 976 R4 640 R8 442 R4 422
3.1 Gross margin R/ha R4 164 R4 455 R6 489 R3 506
3.2 Gross margin R/ton R308 R1 114 R1 854 R1 096
Break-even yield T/ha 11.68 3.23 2.99 2.56
Break-even price R/ton R1 976 R4 640 R8 442 R4 422
Source: BFAP, GSA and GWK – 2020.
Gross margin comparison – baseline: Northern Cape
Figure 3.1: Gross margin comparison – Baseline: Northern Cape irrigation

Gross margin per hectare: Northern Cape irrigation

Maize sensitivity analysis
Yield (t/ha)
Producers price 12.00 12.50 13.00 13.50 14.00 14.50 15.00
R1 885 -4 063 -3 121 -2 178 -1 236 -294 649 1 591
R1 985 -2 863 -1 871 -878 114 1 106 2 099 3 091
R2 085 -1 663 -621 422 1 464 2 506 3 549 4 591
R2 185 -463 629 1 722 2 814 3 906 4 999 6 091
R2 285 737 1 879 3 022 4 164 5 306 6 449 7 591
R2 385 1 937 3 129 4 322 5 514 6 706 7 899 9 091
R2 485 3 137 4 379 5 622 6 864 8 106 9 349 10 591
R2 585 4 337 5 629 6 922 8 214 9 506 10 799 12 091
R2 685 5 537 6 879 8 222 9 564 10 906 12 249 13 591
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R5 354 -1 160 178 1 517 2 855 4 194 5 532 6 871
R5 454 -835 528 1 892 3 255 4 619 5 982 7 346
R5 554 -510 878 2 267 3 655 5 044 6 432 7 821
R5 654 -185 1 228 2 642 4 055 5 469 6 882 8 296
R5 754 140 1 578 3 017 4 455 5 894 7 332 8 771
R5 854 465 1 928 3 392 4 855 6 319 7 782 9 246
R5 954 790 2 278 3 767 5 255 6 744 8 232 9 721
R6 054 1 115 2 628 4 142 5 655 7 169 8 682 10 196
R6 154 1 440 2 978 4 517 6 055 7 594 9 132 10 671
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.00 3.25 3.50 4.00 4.50 5.00
R9 467 -1 449 1 105 3 660 6 214 11 322 16 431 21 539
R9 567 -1 174 1 405 3 985 6 564 11 722 16 881 22 039
R9 667 -899 1 705 4 310 6 914 12 122 17 331 22 539
R9 767 -624 2 005 4 635 7 264 12 522 17 781 23 039
R9 867 -349 2 305 4 960 7 614 12 922 18 231 23 539
R9 967 -74 2 605 5 285 7 964 13 322 18 681 24 039
R10 067 201 2 905 5 610 8 314 13 722 19 131 24 539
R10 167 476 3 205 5 935 8 664 14 122 19 581 25 039
R10 267 751 3 505 6 260 9 014 14 522 20 031 25 539
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.45 2.70 2.95 3.20 3.70 4.20 4.70
R5 118 -1 612 -333 947 2 226 4 785 7 344 9 903
R5 218 -1 367 -63 1 242 2 546 5 155 7 764 10 373
R5 318 -1 122 207 1 537 2 866 5 525 8 184 10 843
R5 418 -877 477 1 832 3 186 5 895 8 604 11 313
R5 518 -632 747 2 127 3 506 6 265 9 024 11 783
R5 618 -387 1 017 2 422 3 826 6 635 9 444 12 253
R5 718 -142 1 287 2 717 4 146 7 005 9 864 12 723
R5 818 103 1 557 3 012 4 466 7 375 10 284 13 193
R5 918 348 1 827 3 307 4 786 7 745 10 704 13 663
Soybeans margin above/below maize
Yield Price (R/ton)
R5 454 R5 554 R5 654 R5 754 R5 854 R5 954 R6 054
3.00 -6 363 -6 063 -5 763 -5 463 -5 163 -4 863 -4 563
3.25 -4 999 -4 674 -4 349 -4 024 -3 699 -3 374 -3 049
3.50 -3 636 -3 286 -2 936 -2 586 -2 236 -1 886 -1 536
3.75 -2 272 -1 897 -1 522 -1 147 -772 -397 -22
4.00 -909 -509 -109 291 691 1 091 1 491
4.25 455 880 1 305 1 730 2 155 2 580 3 005
4.50 1 818 2 268 2 718 3 168 3 618 4 068 4 518
4.75 3 182 3 657 4 132 4 607 5 082 5 557 6 032
5.00 4 546 5 046 5 546 6 046 6 546 7 046 7 546

Notes

  • Farm gate price for ground nuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 286:52:80. Soybeans N:P:K – 120:36:50. Ground nuts N:P:K – 160:45:60. Sunflower N:P:K – 100:30:50.
  • Other macro- and microelements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • 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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