2021/2022 SUMMER CROPS  //  Income and Cost Budgets

KwaZulu-Natal – dryland

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bloedrivier region)
KwaZulu-Natal: Bloedrivier
Crop Maize Soybeans
Production system Dryland

1. Income
Yield: deterministic Ton/ha 7.00 2.65
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153
Total deductions R/ton 382 195
– Transport differential R/ton 322 75
– Grade differential R/ton – –
– Marketing and handling R/ton 60 63
– Seed breeding and technology levy R/ton – 57
Price premiums R/ton – –
Net farm gate price R/ton 2 664 6 958
Gross income R/ha R18 650 R18 437

2. Variable expenditures
Contracting R/ha – –
Crop insurance R/ha 709 2 249
Fertilizer R/ha 4 409 2 265
Lime R/ha 576 –
Seed R/ha 3 031 1 247
Fuel R/ha 1 033 627
Herbicide R/ha 1 376 1 204
Insecticide / Fungicides R/ha 873 366
Marketing costs R/ha – –
Repairs and maintenance R/ha 670 447
Casual labour R/ha 245 –
Aerial spray R/ha – –
Other expenditure R/ha – –
Total variable expenditure R/ha R12 922 R8 405
Total variable expenditure R/ton R1 846 R3 172
3.1 Gross margin R/ha R5 728 R10 032
3.2 Gross margin R/ton R818 R3 786
Break-even yield T/ha 4.85 1.21
Break-even price R/ton R1 846 R3 172
Source: BFAP, GSA and individual farmers – 2021
Gross margin comparison – baseline: KwaZulu-Natal (Bloedrivier region)
Gross margin comparison - Baseline: KwaZulu-Natal (Bloedrivier Region)

Gross margin per hectare: KwaZulu-Natal (Bloedrivier)

Maize sensitivity analysis
Yield (t/ha)
Producers price 5.50 6.00 6.50 7.00 7.50 8.00 8.50
R2 264 -469 663 1 796 2 928 4 060 5 192 6 324
R2 364 81 1 263 2 446 3 628 4 810 5 992 7 174
R2 464 631 1 863 3 096 4 328 5 560 6 792 8 024
R2 564 1 181 2 463 3 746 5 028 6 310 7 592 8 874
R2 664 1 731 3 063 4 396 5 728 7 060 8 392 9 724
R2 764 2 281 3 663 5 046 6 428 7 810 9 192 10 574
R2 864 2 831 4 263 5 696 7 128 8 560 9 992 11 424
R2 964 3 381 4 863 6 346 7 828 9 310 10 792 12 274
R3 064 3 931 5 463 6 996 8 528 10 060 11 592 13 124
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.80 2.05 2.30 2.65 3.00 3.25 3.50
R6 558 3 398 5 038 6 677 8 972 11 267 12 907 14 546
R6 658 3 578 5 243 6 907 9 237 11 567 13 232 14 896
R6 758 3 758 5 448 7 137 9 502 11 867 13 557 15 246
R6 858 3 938 5 653 7 367 9 767 12 167 13 882 15 596
R6 958 4 118 5 858 7 597 10 032 12 467 14 207 15 946
R7 058 4 298 6 063 7 827 10 297 12 767 14 532 16 296
R7 158 4 478 6 268 8 057 10 562 13 067 14 857 16 646
R7 258 4 658 6 473 8 287 10 827 13 367 15 182 16 996
R7 358 4 838 6 678 8 517 11 092 13 667 15 507 17 346
Soybeans margin above/below maize
Yield Price (R/ton)
R6 658 R6 758 R6 858 R6 958 R7 058 R7 158 R7 258
1.65 -3 148 -2 983 -2 818 -2 653 -2 488 -2 323 -2 158
1.90 -1 484 -1 294 -1 104 -914 -724 -534 -344
2.15 181 396 611 826 1 041 1 256 1 471
2.40 1 845 2 085 2 325 2 565 2 805 3 045 3 285
2.65 3 509 3 774 4 039 4 304 4 569 4 834 5 099
2.90 5 174 5 464 5 754 6 044 6 334 6 624 6 914
3.15 6 838 7 153 7 468 7 783 8 098 8 413 8 728
3.40 8 502 8 842 9 182 9 522 9 862 10 202 10 542
3.65 10 167 10 532 10 897 11 262 11 627 11 992 12 357

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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 130:25:35. Soybeans N:P:K – 25:18:36.
  • 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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