Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Caledon region)

Area		Southern Cape: Caledon
Crop		Wheat	Barley	Canola	Oats	Lupins
Production system		Dryland
1. Income
Yield: deterministic	Ton/ha	3.40	3.40	2.00	2.60	1.60
SAFEX simulated / derived price: 2023	R/ton	6 526	6 526	8 205	6 526	5 792
Total deductions	R/ton	1 037	995	27	865	134
– Transport differential	R/ton	750	750	–	832	99
– Grade differential	R/ton	186	172	–	–	–
– Marketing, handling and statutory levies	R/ton	100	73	27	33	35
Price premiums / Canola back-payment (10% of contracted price)	R/ton	–	67	821	–	–
Net farm gate price	R/ton	5 490	5 430	8 999	5 661	5 658
Gross income	R/ha	R18 665	R18 463	R17 998	R14 719	R9 053
2. Variable expenditures
Contracting	R/ha	–	–	–	–	–
Crop insurance	R/ha	54	53	52	42	–
Fertilizer	R/ha	3 957	3 987	3 880	3 243	1 405
Lime	R/ha	232	232	232	194	194
Seed	R/ha	838	698	2 028	731	1 111
Fuel	R/ha	812	834	802	790	719
Herbicide	R/ha	1 466	1 115	1 171	977	907
Insecticide	R/ha	385	251	573	172	187
Fungicides	R/ha	836	1 100	726	446	501
Marketing costs	R/ha	70	87	22	–	–
Repairs and maintenance	R/ha	772	804	593	784	840
Casual labour	R/ha	22	23	24	22	18
Aerial spray	R/ha	–	–	–	–	–
Other expenditure	R/ha	150	155	145	115	115
Total variable expenditure	R/ha	R9 594	R9 341	R10 248	R7 516	R5 998
Total variable expenditure	R/ton	R2 822	R2 747	R5 124	R2 891	R3 749
3.1 Gross margin	R/ha	R9 070	R9 122	R7 749	R7 203	R3 054
3.2 Gross margin	R/ton	R2 668	R2 683	R3 875	R2 770	R1 909
Break-even yield	T/ha	1.75	1.72	1.14	1.33	1.06
Break-even price	R/ton	R2 822	R2 747	R5 124	R2 891	R3 749

Source: Overberg Agri, GSA and BFAP, updated April 2023.

Gross margin per hectare: Southern Cape – Overberg, Caledon

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.