WINTER CROPS  |  2020 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 price / producer price: 2020 R/ton 4 741 4 741 5 500
Total deductions R/ton 588 517 160
– Transport differential R/ton 476 476 130
– Grade differential R/ton 3
– Marketing, handling and statutory levies R/ton 109 41 30
Price premiums / Canola back-payment (10% of contracted price) R/ton 65 550
Net farm gate price R/ton 4 153 4 033 5 890
Gross income R/ha R33 225 R30 248 R23 560

2. Variable expenditures

Contracting R/ha 1 350 1 350 1 350
Crop insurance R/ha 2 060 1 875 942
Fertilizer R/ha 8 274 6 606 4 171
Lime R/ha 1 073 1 073
Seed R/ha 1 580 1 320 988
Fuel R/ha 1 009 983 802
Herbicide R/ha 323 323 1 492
Insecticide R/ha 940 190 573
Fungicides R/ha 257 206 1 077
Marketing costs R/ha 192 225 38
Repairs and maintenance R/ha 718 718 758
Casual labour R/ha
Irrigation: Water R/ha 942 895 866
Irrigation: Electricity R/ha 2 982 2 833 2 605
Aerial spray R/ha 600 200
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 738 738 738
Total variable expenditure R/ha R23 038 R19 534 R16 399
Total variable expenditure R/ton R2 880 R2 604 R4 100
3.1 Gross margin R/ha R10 188 R10 715 R7 161
3.2 Gross margin R/ton R1 273 R1 429 R1 790
Break-even yield T/ha 5.55 4.84 2.78
Break-even price R/ton R2 880 R2 604 R4 100
Source: GWK, GSA and BFAP, April 2020.
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
R3 153 -177.33 611 1 399 2 188 2 976 3 764 4 552
R3 403 1 635 2 486 3 337 4 188 5 038 5 889 6 740
R3 653 3 448 4 361 5 274 6 188 7 101 8 014 8 927
R3 903 5 260 6 236 7 212 8 188 9 163 10 139 11 115
R4 153 7 073 8 111 9 149 10 188 11 226 12 264 13 302
R4 403 8 885 9 986 11 087 12 188 13 288 14 389 15 490
R4 653 10 698 11 861 13 024 14 188 15 351 16 514 17 677
R4 903 12 510 13 736 14 962 16 188 17 413 18 639 19 865
R5 153 14 323 15 611 16 899 18 188 19 476 20 764 22 052
Barley sensitivity analysis
Yield (t/ha)
Producers price 6.75 7.00 7.25 7.50 7.75 8.00 8.25
R3 033 940 1 698 2 456 3 215 3 973 4 731 5 489
R3 283 2 627 3 448 4 269 5 090 5 910 6 731 7 552
R3 533 4 315 5 198 6 081 6 965 7 848 8 731 9 614
R3 783 6 002 6 948 7 894 8 840 9 785 10 731 11 677
R4 033 7 690 8 698 9 706 10 715 11 723 12 731 13 739
R4 283 9 377 10 448 11 519 12 590 13 660 14 731 15 802
R4 533 11 065 12 198 13 331 14 465 15 598 16 731 17 864
R4 783 12 752 13 948 15 144 16 340 17 535 18 731 19 927
R5 033 14 440 15 698 16 956 18 215 19 473 20 731 21 989
Canola sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 890 -507 716 1 938 3 161 4 383 5 606 6 829
R5 140 306 1 591 2 876 4 161 5 446 6 731 8 016
R5 390 1 118 2 466 3 813 5 161 6 508 7 856 9 204
R5 640 1 931 3 341 4 751 6 161 7 571 8 981 10 391
R5 890 2 743 4 216 5 688 7 161 8 633 10 106 11 579
R6 140 3 556 5 091 6 626 8 161 9 696 11 231 12 766
R6 390 4 368 5 966 7 563 9 161 10 758 12 356 13 954
R6 640 5 181 6 841 8 501 10 161 11 821 13 481 15 141
R6 890 5 993 7 716 9 438 11 161 12 883 14 606 16 329
Canola margin above/below wheat
Yield Price (R/ton)
R5 140 R5 390 R5 640 R5 890 R6 140 R6 390 R6 640
3.00 -11 167 -10 417 -9 667 -8 917 -8 167 -7 417 -6 667
3.25 -9 882 -9 069 -8 257 -7 444 -6 632 -5 819 -5 007
3.50 -8 597 -7 722 -6 847 -5 972 -5 097 -4 222 -3 347
3.75 -7 312 -6 374 -5 437 -4 499 -3 562 -2 624 -1 687
4.00 -6 027 -5 027 -4 027 -3 027 -2 027 -1 027 -27
4.25 -4 742 -3 679 -2 617 -1 554 -492 571 1 633
4.50 -3 457 -2 332 -1 207 -82 1 043 2 168 3 293
4.75 -2 172 -984 203 1 391 2 578 3 766 4 953
5.00 -886 364 1 614 2 864 4 114 5 364 6 614

Notes

  • Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
  • 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 producers to allocate them individually.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
  • The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
  • 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. Overhead costs such as interest on production loans, labour, management and administration will vary to a large extent from producer to producer. Producers will therefore have to deduct the farm business' overhead cost from the gross margins as stipulated in the tables and figures to calculate the net income per crop.
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