2024/2025 ICB: Dryland soybean and maize in KwaZulu-Natal
2024/2025 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: 2025 R/ton 3 798 7 520
Total deductions R/ton 550 382
– Transport differential R/ton 465 257
– Grade differential R/ton 19 –
– Handling and commission R/ton 66 65
– Seed breeding and technology levy R/ton – 60
Price premiums R/ton – –
Net farm gate price R/ton 3 248 7 138
Gross income R/ha R22 738 R18 915

2. Variable expenditures
Contracting R/ha – –
Crop insurance R/ha 864 2 308
Fertilizer R/ha 5 289 2 390
Lime R/ha 786 –
Seed R/ha 4 015 1 943
Fuel R/ha 1 421 862
Herbicide R/ha 1 219 1 025
Insecticide / Fungicides R/ha 703 824
Marketing costs R/ha – –
Repairs and maintenance R/ha 767 482
Casual labour R/ha 335 –
Aerial spray R/ha – –
Other expenditure R/ha – –
Total variable expenditure R/ha R15 401 R9 835
Total variable expenditure R/ton R2 200 R3 711
3.1 Gross margin R/ha R7 338 R9 081
3.2 Gross margin R/ton R1 048 R3 427
Break-even yield T/ha 4.74 1.38
Break-even price R/ton R2 200 R3 711
Source: BFAP, GSA and individual farmers – 2024
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 848 265 1 690 3 114 4 538 5 962 7 386 8 810
R2 948 815 2 290 3 764 5 238 6 712 8 186 9 660
R3 048 1 365 2 890 4 414 5 938 7 462 8 986 10 510
R3 148 1 915 3 490 5 064 6 638 8 212 9 786 11 360
R3 248 2 465 4 090 5 714 7 338 8 962 10 586 12 210
R3 348 3 015 4 690 6 364 8 038 9 712 11 386 13 060
R3 448 3 565 5 290 7 014 8 738 10 462 12 186 13 910
R3 548 4 115 5 890 7 664 9 438 11 212 12 986 14 760
R3 648 4 665 6 490 8 314 10 138 11 962 13 786 15 610
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.80 2.05 2.30 2.65 3.00 3.25 3.50
R6 738 2 294 3 978 5 663 8 021 10 379 12 064 13 748
R6 838 2 474 4 183 5 893 8 286 10 679 12 389 14 098
R6 938 2 654 4 388 6 123 8 551 10 979 12 714 14 448
R7 038 2 834 4 593 6 353 8 816 11 279 13 039 14 798
R7 138 3 014 4 798 6 583 9 081 11 579 13 364 15 148
R7 238 3 194 5 003 6 813 9 346 11 879 13 689 15 498
R7 338 3 374 5 208 7 043 9 611 12 179 14 014 15 848
R7 438 3 554 5 413 7 273 9 876 12 479 14 339 16 198
R7 538 3 734 5 618 7 503 10 141 12 779 14 664 16 548
Soybeans margin above/below maize
Yield Price (R/ton)
R6 838 R6 938 R7 038 R7 138 R7 238 R7 338 R7 438
1.65 -5 890 -5 725 -5 560 -5 395 -5 230 -5 065 -4 900
1.90 -4 180 -3 990 -3 800 -3 610 -3 420 -3 230 -3 040
2.15 -2 471 -2 256 -2 041 -1 826 -1 611 -1 396 -1 181
2.40 -761 -521 -281 -41 199 439 679
2.65 948 1 213 1 478 1 743 2 008 2 273 2 538
2.90 2 658 2 948 3 238 3 528 3 818 4 108 4 398
3.15 4 367 4 682 4 997 5 312 5 627 5 942 6 257
3.40 6 076 6 416 6 756 7 096 7 436 7 776 8 116
3.65 7 786 8 151 8 516 8 881 9 246 9 611 9 976

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.
  • 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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