WINTER CROPS  //  2023 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 3.40 3.40 2.00 2.60 1.60
SAFEX simulated / derived price: 2023 R/ton 6 526 6 526 8 205 6 526 5 792
Total deductions R/ton 1 037 995 27 865 134
– Transport differential R/ton 750 750 832 99
– Grade differential R/ton 186 172
– Marketing, handling and statutory levies R/ton 100 73 27 33 35
Price premiums / Canola back-payment (10% of contracted price) R/ton 67 821
Net farm gate price R/ton 5 490 5 430 8 999 5 661 5 658
Gross income R/ha R18 665 R18 463 R17 998 R14 719 R9 053

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 54 53 52 42
Fertilizer R/ha 3 957 3 987 3 880 3 243 1 405
Lime R/ha 232 232 232 194 194
Seed R/ha 838 698 2 028 731 1 111
Fuel R/ha 812 834 802 790 719
Herbicide R/ha 1 466 1 115 1 171 977 907
Insecticide R/ha 385 251 573 172 187
Fungicides R/ha 836 1 100 726 446 501
Marketing costs R/ha 70 87 22
Repairs and maintenance R/ha 772 804 593 784 840
Casual labour R/ha 22 23 24 22 18
Aerial spray R/ha
Other expenditure R/ha 150 155 145 115 115
Total variable expenditure R/ha R9 594 R9 341 R10 248 R7 516 R5 998
Total variable expenditure R/ton R2 822 R2 747 R5 124 R2 891 R3 749
3.1 Gross margin R/ha R9 070 R9 122 R7 749 R7 203 R3 054
3.2 Gross margin R/ton R2 668 R2 683 R3 875 R2 770 R1 909
Break-even yield T/ha 1.75 1.72 1.14 1.33 1.06
Break-even price R/ton R2 822 R2 747 R5 124 R2 891 R3 749
Source: Overberg Agri, GSA and BFAP, updated April 2023.
Gross margin comparison – Baseline: Southern Cape (Caledon region)
Graph showing gross margin comparison for Southern Cape (Caledon region)

Gross margin per hectare: Southern Cape – Overberg, Caledon

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.70 2.95 3.20 3.40 3.70 3.95 4.20
R4 490 2 528 3 650 4 772 5 670 7 017 8 140 9 262
R4 740 3 203 4 388 5 572 6 520 7 942 9 127 10 312
R4 990 3 878 5 125 6 372 7 370 8 867 10 115 11 362
R5 240 4 553 5 863 7 172 8 220 9 792 11 102 12 412
R5 490 5 228 6 600 7 972 9 070 10 717 12 090 13 462
R5 740 5 903 7 338 8 772 9 920 11 642 13 077 14 512
R5 990 6 578 8 075 9 572 10 770 12 567 14 065 15 562
R6 240 7 253 8 813 10 372 11 620 13 492 15 052 16 612
R6 490 7 928 9 550 11 172 12 470 14 417 16 040 17 662
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.70 2.95 3.20 3.40 3.70 3.95 4.20
R4 430 2 621 3 728 4 836 5 722 7 051 8 159 9 266
R4 680 3 296 4 466 5 636 6 572 7 976 9 146 10 316
R4 930 3 971 5 203 6 436 7 422 8 901 10 134 11 366
R5 180 4 646 5 941 7 236 8 272 9 826 11 121 12 416
R5 430 5 321 6 678 8 036 9 122 10 751 12 109 13 466
R5 680 5 996 7 416 8 836 9 972 11 676 13 096 14 516
R5 930 6 671 8 153 9 636 10 822 12 601 14 084 15 566
R6 180 7 346 8 891 10 436 11 672 13 526 15 071 16 616
R6 430 8 021 9 628 11 236 12 522 14 451 16 059 17 666
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R7 999 -250 1 750 3 750 5 749 7 749 9 749 11 748
R8 249 63 2 125 4 187 6 249 8 312 10 374 12 436
R8 499 375 2 500 4 625 6 749 8 874 10 999 13 123
R8 749 688 2 875 5 062 7 249 9 437 11 624 13 811
R8 999 1 000 3 250 5 500 7 749 9 999 12 249 14 498
R9 249 1 313 3 625 5 937 8 249 10 562 12 874 15 186
R9 499 1 625 4 000 6 375 8 749 11 124 13 499 15 873
R9 749 1 938 4 375 6 812 9 249 11 687 14 124 16 561
R9 999 2 250 4 750 7 250 9 749 12 249 14 749 17 248
Canola margin above/below wheat
Yield Price (R/ton)
R8 249 R8 499 R8 999 R8 999 R9 249 R9 499 R9 749
1.00 -11 070 -10 820 -10 570 -10 320 -10 070 -9 820 -9 570
1.25 -9 008 -8 695 -8 383 -8 070 -7 758 -7 445 -7 133
1.50 -6 945 -6 570 -6 195 -5 820 -5 445 -5 070 -4 695
1.75 -4 883 -4 446 -4 008 -3 571 -3 133 -2 696 -2 258
2.00 -2 821 -2 321 -1 821 -1 321 -821 -321 179
2.25 -759 -196 366 929 1 491 2 054 2 616
2.50 1 303 1 928 2 553 3 178 3 803 4 428 5 053
2.75 3 366 4 053 4 741 5 428 6 116 6 803 7 491
3.00 5 428 6 178 6 928 7 678 8 428 9 178 9 928

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. 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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