2024/2025 ICB: Northern Cape soybean and maize under irrigation
2024/2025 SUMMER CROPS  //  Income and Cost Budgets

Northern Cape – irrigation

Income and cost budgets for maize, soybeans, groundnuts and sunflower (oil) for the Northern Cape
Area Northern Cape
Crop Maize Soybeans Groundnuts Sunflower
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 14.00 4.00 3.50 3.00
SAFEX simulated price / producer price: 2025 R/ton 3 798 7 520 17 550 8 180
Total deductions R/ton 594 468 69 683
– Transport differential R/ton 511 339 – 573
– Grade differential R/ton 14 – – –
– Handling and commission R/ton 69 69 69 110
– Seed breeding and technology levy R/ton – 60 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 3 205 7 052 18 981 7 498
Gross income R/ha R44 864 R28 206 R67 934 R22 493

2. Variable expenditures
Contracting R/ha 1 100 1 250 3 560 1 100
Crop insurance R/ha 449 1 692 679 675
Fertilizer R/ha 11 917 7 230 9 357 6 609
Lime R/ha 912 – 518 –
Seed R/ha 7 227 2 563 4 225 1 011
Fuel R/ha 1 431 1 000 1 560 1 522
Herbicide R/ha 869 632 1 178 671
Insecticide / Fungicides R/ha 3 422 1 877 3 741 290
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 725 226 1 066 1 168
Casual labour R/ha 671 – 248 –
Aerial spray R/ha 533 – – –
Irrigation electricity R/ha 6 293 6 293 6 475 4 469
Water R/ha 1 242 1 242 1 278 882
Other expenditure: scheduling/irrigation equipment R&M R/ha 1 386 1 386 3 523 1 017
Total variable expenditure R/ha R38 177 R25 391 R37 409 R19 413
Total variable expenditure R/ton R2 727 R6 348 R10 688 R6 471
3.1 Gross margin R/ha R6 686 R2 815 R30 525 R3 080
3.2 Gross margin R/ton R478 R704 R8 721 R1 027
Break-even yield T/ha 11.91 3.60 1.97 2.59
Break-even price R/ton R2 727 R6 348 R10 688 R6 471
Source: BFAP, GSA and GWK – 2024.
Gross margin comparison – baseline: Northern Cape Irrigation
Figure 3.1: Gross margin comparison – Baseline: Northern Cape irrigation

Gross margin per hectare: Northern Cape irrigation

Maize sensitivity analysis
Yield (t/ha)
Producers price 12.50 13.00 13.50 14.00 14.50 15.00 15.50
R2 805 -3 120 -1 718 -316 1 086 2 489 3 891 5 293
R2 905 -1 870 -418 1 034 2 486 3 939 5 391 6 843
R3 005 -620 882 2 384 3 886 5 389 6 891 8 393
R3 105 630 2 182 3 734 5 286 6 839 8 391 9 943
R3 205 1 880 3 482 5 084 6 686 8 289 9 891 11 493
R3 305 3 130 4 782 6 434 8 086 9 739 11 391 13 043
R3 405 4 380 6 082 7 784 9 486 11 189 12 891 14 593
R3 505 5 630 7 382 9 134 10 886 12 639 14 391 16 143
R3 605 6 880 8 682 10 484 12 286 14 089 15 891 17 693
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R6 652 -3 773 -2 110 -448 1 215 2 878 4 541 6 204
R6 752 -3 448 -1 760 -73 1 615 3 303 4 991 6 679
R6 852 -3 123 -1 410 302 2 015 3 728 5 441 7 154
R6 952 -2 798 -1 060 677 2 415 4 153 5 891 7 626
R7 052 -2 473 -710 1 052 2 815 4 578 6 341 8 104
R7 152 -2 148 -360 1 427 3 215 5 003 6 791 8 579
R7 252 -1 823 -10 1 802 3 615 5 428 7 241 9 054
R7 352 -1 498 340 2 177 4 015 5 853 7 691 9 529
R7 452 -1 173 690 2 552 4 415 6 278 8 141 10 004
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.00 3.25 3.50 4.00 4.50 5.00
R18 581 15 751 20 584 25 417 30 250 39 915 49 581 59 246
R18 681 16 026 20 884 25 742 30 600 40 315 50 031 59 746
R18 781 16 301 21 184 26 067 30 950 40 715 50 481 60 246
R18 881 16 576 21 484 26 392 31 300 41 115 50 931 60 746
R18 981 16 851 21 784 26 717 31 650 41 515 51 381 61 246
R19 081 17 126 22 084 27 042 32 000 41 915 51 831 61 746
R19 181 17 401 22 384 27 367 32 350 42 315 52 281 62 246
R19 281 17 676 22 684 27 692 32 700 42 715 52 731 62 746
R19 381 17 951 22 984 28 017 33 050 43 115 53 181 63 246
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.50 4.00 4.50
R7 098 -3 443 -1 668 106 1 880 5 429 8 978 12 527
R7 198 -3 218 -1 418 381 2 180 5 779 9 378 12 977
R7 298 -2 993 -1 168 656 2 480 6 129 9 778 13 427
R7 398 -2 768 -918 931 2 780 6 479 10 178 13 877
R7 498 -2 543 -668 1 206 3 080 6 829 10 578 14 327
R7 598 -2 318 -418 1 481 3 380 7 179 10 978 14 777
R7 698 -2 093 -168 1 756 3 680 7 529 11 378 15 227
R7 798 -1 868 82 2 031 3 980 7 879 11 778 15 677
R7 898 -1 643 332 2 306 4 280 8 229 12 178 16 127
Soybeans margin above/below maize
Yield Price (R/ton)
R6 752 R6 852 R6 952 R7 052 R7 152 R7 252 R7 352
3.00 -11 823 -11 523 -11 223 -10 923 -10 623 -10 323 -10 023
3.25 -10 135 -9 810 -9 485 -9 160 -8 835 -8 510 -8 185
3.50 -8 447 -8 097 -7 747 -7 397 -7 047 -6 697 -6 347
3.75 -6 759 -6 384 -6 009 -5 634 -5 259 -4 884 -4 509
4.00 -5 071 -4 671 -4 271 -3 871 -3 471 -3 071 -2 671
4.25 -3 383 -2 958 -2 533 -2 108 -1 683 -1 258 -833
4.50 -1 695 -1 245 -795 -345 105 555 1 005
4.75 -7 468 943 1 418 1 893 2 368 2 843
5.00 1 680 2 180 2 680 3 180 3 680 4 180 4 680

Notes

  • Farm gate price for groundnuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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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