OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

WINTER CROPS  //  2022 Income and Cost Budgets

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 3.50
SAFEX simulated price / producer price: 2022 R/ton 7 038 7 038 9 364
Total deductions R/ton 863 814 161
– Transport differential R/ton 461 461 130
– Grade differential R/ton 286 272 –
– Marketing, handling and statutory levies R/ton 116 81 31
Price premiums / Canola back-payment (10% of contracted price) R/ton – 65 936
Net farm gate price R/ton 6 175 5 911 10 139
Gross income R/ha R49 402 R44 334 R35 488

2. Variable expenditures
Contracting R/ha 1 100 1 100 1 489
Crop insurance R/ha 3 063 2 749 1 420
Fertilizer R/ha 17 496 13 648 8 535
Lime R/ha 1 138 1 138 –
Seed R/ha 1 776 1 483 1 223
Fuel R/ha 1 474 1 435 1 171
Herbicide R/ha 558 340 2 659
Insecticide R/ha 1 069 192 677
Fungicides R/ha 235 252 1 256
Marketing costs R/ha 212 232 36
Repairs and maintenance R/ha 909 909 1 003
Casual labour R/ha – – –
Irrigation: Water R/ha 1 080 1 111 1 026
Irrigation: Electricity R/ha 3 732 3 545 3 545
Aerial spray R/ha 675 225 –
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 815 814 814
Total variable expenditure R/ha R35 331 R29 173 R24 854
Total variable expenditure R/ton R4 416 R3 890 R7 101
3.1 Gross margin R/ha R14 071 R15 161 R10 634
3.2 Gross margin R/ton R1 759 R2 022 R3 038
Break-even yield T/ha 5.72 4.94 2.45
Break-even price R/ton R4 416 R3 890 R7 101
Source: GWK, GSA and BFAP, updated September 2022.
Gross margin comparison – Baseline: Northern Cape
Graph showing the baseline gross margin comparison for Northern Cape irrigation

Gross margin per hectare: Northern Cape

Wheat sensitivity analysis
Yield (t/ha)
Producers price 7.25 7.50 7.75 8.00 8.25 8.50 8.75
R5 175 2 189 3 483 4 777 6 071 7 364 8 658 9 952
R5 425 4 002 5 358 6 714 8 071 9 427 10 783 12 140
R5 675 5 814 7 233 8 652 10 071 11 489 12 908 14 327
R5 925 7 627 9 108 10 589 12 071 13 552 15 033 16 515
R6 175 9 439 10 983 12 527 14 071 15 614 17 158 18 702
R6 425 11 252 12 858 14 464 16 071 17 677 19 283 20 890
R6 675 13 064 14 733 16 402 18 071 19 739 21 408 23 077
R6 925 14 877 16 608 18 339 20 071 21 802 23 533 25 265
R7 175 16 689 18 483 20 277 22 071 23 864 25 658 27 452
Barley sensitivity analysis
Yield (t/ha)
Producers price 6.75 7.00 7.25 7.50 7.75 8.00 8.25
R4 911 3 978 5 206 6 433 7 661 8 889 10 117 11 345
R5 161 5 665 6 956 8 246 9 536 10 827 12 117 13 407
R5 411 7 353 8 706 10 058 11 411 12 764 14 117 15 470
R5 661 9 040 10 456 11 871 13 286 14 702 16 117 17 532
R5 911 10 728 12 206 13 683 15 161 16 639 18 117 19 595
R6 161 12 415 13 956 15 496 17 036 18 577 20 117 21 657
R6 411 14 103 15 706 17 308 18 911 20 514 22 117 23 720
R6 661 15 790 17 456 19 121 20 786 22 452 24 117 25 782
R6 911 17 478 19 206 20 933 22 661 24 389 26 117 27 845
Canola sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.00 3.25 3.50 3.75 4.00 4.25
R9 139 279 2 564 4 849 7 134 9 418 11 703 13 988
R9 389 967 3 314 5 661 8 009 10 356 12 703 15 051
R9 639 1 654 4 064 6 474 8 884 11 293 13 703 16 113
R9 889 2 342 4 814 7 286 9 759 12 231 14 703 17 176
R10 139 3 029 5 564 8 099 10 634 13 168 15 703 18 238
R10 389 3 717 6 314 8 911 11 509 14 106 16 703 19 301
R10 639 4 404 7 064 9 724 12 384 15 043 17 703 20 363
R10 889 5 092 7 814 10 536 13 259 15 981 18 703 21 426
R11 139 5 779 8 564 11 349 14 134 16 918 19 703 22 488
Canola margin above/below wheat
Yield Price (R/ton)
R9 389 R9 639 R9 889 R10 139 R10 389 R10 639 R10 889
2.50 -10 757 -10 007 -9 257 -8 507 -7 757 -7 007 -6 257
2.75 -13 104 -12 417 -11 729 -11 042 -10 354 -9 667 -8 979
3.00 -10 757 -10 007 -9 257 -8 507 -7 757 -7 007 -6 257
3.25 -8 409 -7 597 -6 784 -5 972 -5 159 -4 347 -3 534
3.50 -6 062 -5 187 -4 312 -3 437 -2 562 -1 687 -812
3.75 -3 715 -2 777 -1 840 -902 35 973 1 910
4.0 -1 367 -367 633 1 633 2 633 3 633 4 633
4.25 980 2 042 3 105 4 167 5 230 6 292 7 355
5.00 8 022 9 272 10 522 11 772 13 022 14 272 15 522

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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