Northern Cape – irrigation

Income and cost budgets for wheat, barley and canola for Northern Cape

Area		Northern Cape
Crop		Wheat	Barley	Canola
Production system		Irrigation
1. Income
Yield: deterministic	Ton/ha	8.00	7.50	4.00
SAFEX simulated price / producer price: 2020	R/ton	4 741	4 741	5 500
Total deductions	R/ton	588	517	160
– Transport differential	R/ton	476	476	130
– Grade differential	R/ton	3	–	–
– Marketing, handling and statutory levies	R/ton	109	41	30
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	65	550
Net farm gate price	R/ton	4 153	4 033	5 890
Gross income	R/ha	R33 225	R30 248	R23 560
2. Variable expenditures
Contracting	R/ha	1 350	1 350	1 350
Crop insurance	R/ha	2 060	1 875	942
Fertilizer	R/ha	8 274	6 606	4 171
Lime	R/ha	1 073	1 073	–
Seed	R/ha	1 580	1 320	988
Fuel	R/ha	1 009	983	802
Herbicide	R/ha	323	323	1 492
Insecticide	R/ha	940	190	573
Fungicides	R/ha	257	206	1 077
Marketing costs	R/ha	192	225	38
Repairs and maintenance	R/ha	718	718	758
Casual labour	R/ha	–	–	–
Irrigation: Water	R/ha	942	895	866
Irrigation: Electricity	R/ha	2 982	2 833	2 605
Aerial spray	R/ha	600	200	–
Other expenditure: Scheduling / Irrigation Equipment R&M	R/ha	738	738	738
Total variable expenditure	R/ha	R23 038	R19 534	R16 399
Total variable expenditure	R/ton	R2 880	R2 604	R4 100
3.1 Gross margin	R/ha	R10 188	R10 715	R7 161
3.2 Gross margin	R/ton	R1 273	R1 429	R1 790
Break-even yield	T/ha	5.55	4.84	2.78
Break-even price	R/ton	R2 880	R2 604	R4 100

Source: GWK, GSA and BFAP, April 2020.

Gross margin per hectare: Northern Cape

Please refer to Methodology, Approach and Definitions for in-depth interpretation of enterprise budgets.
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 producers to allocate them individually.
The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
Marketing cost assumes that approximately 15% of the wheat, barley and canola crop requires drying.
The cost of fertiliser reflects a combination of nitrogen, phosphorous, potassium and other macro and micro nutrients.
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.