Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Eastern Rûens – normal potential regions)

Area		Southern Cape: Eastern Rûens (normal potential)
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	2.50	2.50	1.75	2.20	1.50
SAFEX simulated / derived price: 2025	R/ton	6 327	6 327	7 637	6 327	5 440
Total deductions	R/ton	1 090	1 119	29	924	194
– Transport differential	R/ton	800	800	–	800	94
– Grade differential	R/ton	168	286	–	–	–
– Marketing, handling and statutory levies	R/ton	123	33	29	124	100
Price premiums / Canola back-payment	R/ton	–	74	764	–	–
Net farm gate price	R/ton	5 237	5 387	8 371	5 403	5 246
Gross income	R/ha	R13 093	R13 468	R14 650	R11 888	R7 869
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	38	39	42	34	–
Fertilizer	R/ha	2 430	2 300	3 295	1 945	1 144
Lime	R/ha	262	262	262	220	–
Seed	R/ha	605	439	1 551	1 151	958
Fuel	R/ha	730	746	743	725	671
Herbicide	R/ha	1 613	1 016	1 118	897	1 061
Insecticide	R/ha	311	104	531	122	108
Fungicides	R/ha	716	1 083	544	474	644
Marketing costs	R/ha	65	89	37	–	–
Repairs and maintenance	R/ha	887	837	946	699	367
Casual labour	R/ha	17	21	21	14	7
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	36	165	153	123	123
Total variable expenditure	R/ha	R7 709	R7 102	R9 243	R6 404	R5 085
Total variable expenditure	R/ton	R3 083	R2 841	R5 282	R2 911	R3 390
3.1 Gross margin	R/ha	R5 384	R6 366	R5 406	R5 483	R2 784
3.2 Gross margin	R/ton	R2 154	R2 546	R3 089	R2 492	R1 856
Break-even yield	T/ha	1.47	1.32	1.10	1.19	0.97
Break-even price	R/ton	R3 083	R2 841	R5 282	R2 911	R3 390

Source: SSK, GSA and BFAP, updated April 2025.

Gross margin per hectare: Southern Cape – Eastern Rûens (normal potential)

Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
The canola back-payment assumes 10% of contracted price.
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.