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	3.40	3.40	1.90	2.60	1.60
SAFEX simulated / derived price: 2022	R/ton	7 038	7 038	9 364	7 038	6 801
Total deductions	R/ton	939	889	168	881	140
– Transport differential	R/ton	615	615	137	840	100
– Grade differential	R/ton	210	194	–	–	–
– Marketing, handling and statutory levies	R/ton	114	79	31	41	40
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	936	–	–
Net farm gate price	R/ton	6 099	6 028	10 132	6 158	6 661
Gross income	R/ha	R20 737	R20 494	R19 252	R16 010	R10 657
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	60	59	55	46	31
Fertilizer	R/ha	5 109	5 151	5 300	4 139	1 690
Lime	R/ha	199	199	199	167	167
Seed	R/ha	681	540	1 576	521	980
Fuel	R/ha	735	755	726	715	651
Herbicide	R/ha	1 804	1 141	1 276	927	882
Insecticide	R/ha	282	284	474	205	186
Fungicides	R/ha	668	1 079	565	541	249
Marketing costs	R/ha	68	84	20	–	–
Repairs and maintenance	R/ha	720	703	645	661	417
Casual labour	R/ha	19	20	21	19	15
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	122	127	117	99	99
Total variable expenditure	R/ha	R10 466	R10 143	R10 973	R8 039	R5 365
Total variable expenditure	R/ton	R3 078	R2 983	R5 775	R3 092	R3 353
3.1 Gross margin	R/ha	R10 271	R10 351	R8 279	R7 970	R5 292
3.2 Gross margin	R/ton	R3 021	R3 045	R4 357	R3 066	R3 308
Break-even yield	T/ha	1.72	1.68	1.08	1.31	0.81
Break-even price	R/ton	R3 078	R2 983	R5 775	R3 092	R3 353

Source: Overberg Agri, GSA and BFAP, updated September 2022.

Gross margin per hectare: Southern Cape – Overberg, Caledon

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. 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.