2021/2022 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 13.50 4.00 3.50 3.00
SAFEX simulated price / producer price: 2022 R/ton 3 046 7 153 13 637 8 318
Total deductions R/ton 454 218 63 541
– Transport differential R/ton 391 98 – 448
– Grade differential R/ton – – – –
– Handling and commission R/ton 63 63 63 93
– Seed breeding and technology levy R/ton – 57 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 2 592 6 935 15 074 7 777
Gross income R/ha R34 996 R27 739 R54 259 R23 331

2. Variable expenditures
Contracting R/ha 1 100 1 100 3 560 1 100
Crop insurance R/ha 350 1 664 543 700
Fertilizer R/ha 9 899 6 213 8 034 5 799
Lime R/ha 703 – 518 –
Seed R/ha 5 456 1 825 3 082 807
Fuel R/ha 1 040 727 1 134 1 106
Herbicide R/ha 631 427 1 169 92
Insecticide / Fungicides R/ha 2 557 1 451 4 179 271
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 595 294 804 838
Casual labour R/ha 215 – 195 –
Aerial spray R/ha 900 – – –
Irrigation electricity R/ha 4 292 4 292 4 416 3 048
Water R/ha 1 187 1 187 1 221 843
Other expenditure: scheduling/irrigation equipment R&M R/ha 771 771 2 891 575
Total variable expenditure R/ha R29 694 R19 951 R31 745 R15 179
Total variable expenditure R/ton R2 200 R4 988 R9 070 R5 060
3.1 Gross margin R/ha R5 302 R7 788 R22 514 R8 152
3.2 Gross margin R/ton R393 R1 947 R6 432 R2 717
Break-even yield T/ha 11.45 2.88 2.11 1.95
Break-even price R/ton R2 200 R4 988 R9 070 R5 060
Source: BFAP, GSA and GWK – 2021.
Gross margin comparison – baseline: Northern Cape
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 12.00 12.50 13.00 13.50 14.00 14.50 15.00
R2 192 -3 387 -2 291 -1 194 -98 998 2 094 3 190
R2 292 -2 187 -1 041 106 1 252 2 398 3 544 4 690
R2 392 -987 209 1 406 2 602 3 798 4 994 6 190
R2 492 213 1 459 2 706 3 952 5 198 6 444 7 690
R2 592 1 413 2 709 4 006 5 302 6 598 7 894 9 190
R2 692 2 613 3 959 5 306 6 652 7 997 9 344 10 690
R2 792 3 813 5 209 6 606 8 002 9 398 10 794 12 190
R2 892 5 013 6 459 7 906 9 352 10 798 12 244 13 690
R2 992 6 213 7 709 9 206 10 702 12 198 13 694 15 190
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R6 535 1 287 2 921 4 555 6 188 7 822 9 456 11 090
R6 635 1 612 3 271 4 930 6 588 8 247 9 906 11 565
R6 735 1 937 3 621 5 305 6 988 8 672 10 356 12 040
R6 835 2 262 3 971 5 680 7 388 9 097 10 806 12 515
R6 935 2 587 4 321 6 055 7 788 9 522 11 256 12 990
R7 035 2 912 4 671 6 430 8 188 9 947 11 706 13 465
R7 135 3 237 5 021 6 805 8 588 10 372 12 156 13 940
R7 235 3 562 5 371 7 180 8 988 10 797 12 606 14 415
R7 335 3 887 5 721 7 555 9 388 11 222 13 056 14 890
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.00 3.25 3.50 4.00 4.50 5.00
R14 674 10 671 14 527 18 383 22 239 29 951 37 663 45 375
R14 774 10 946 14 827 18 708 22 589 30 351 38 113 45 875
R14 874 11 221 15 127 19 033 22 939 30 751 38 563 46 375
R14 974 11 496 15 427 19 358 23 289 31 151 39 013 46 875
R15 074 11 771 15 727 19 683 23 639 31 551 39 463 47 375
R15 174 12 046 16 027 20 008 23 989 31 951 39 913 47 875
R15 274 12 321 16 327 20 327 24 339 32 351 40 363 48 375
R15 374 12 596 16 627 20 658 24 689 32 751 40 813 48 875
R15 474 12 871 16 927 20 983 25 039 33 151 41 263 49 375
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.50 4.00 4.50
R7 377 1 419 3 263 5 108 6 952 10 640 14 329 18 017
R7 477 1 644 3 513 5 383 7 252 10 990 14 729 18 467
R7 577 1 869 3 763 5 658 7 552 11 340 15 129 18 917
R7 677 2 094 4 013 5 933 7 852 11 690 15 529 19 367
R7 777 2 319 4 263 6 208 8 152 12 040 15 929 19 817
R7 877 2 544 4 513 6 483 8 452 12 390 16 329 20 267
R7 977 2 769 4 763 6 758 8 752 12 740 16 729 20 717
R8 077 2 994 5 013 7 033 9 052 13 090 17 129 21 167
R8 177 3 219 5 263 7 308 9 352 13 440 17 529 21 617
Soybeans margin above/below maize
Yield Price (R/ton)
R6 635 R6 735 R6 835 R6 935 R7 035 R7 135 R7 235
3.00 -5 348 -5 048 -4 748 -4 448 -4 148 -3 848 -3 548
3.25 -3 689 -3 364 -3 039 -2 714 -2 389 -2 064 -1 739
3.50 -2 031 -1 681 -1 331 -981 -631 -281 69
3.75 -372 3 378 753 1 128 1 503 1 878
4.00 1 287 1 687 2 087 2 487 2 887 3 287 3 687
4.25 2 945 3 370 3 795 4 220 4 645 5 070 5 495
4.50 4 604 5 054 5 504 5 954 6 404 6 854 7 304
4.75 6 263 6 738 7 213 7 688 8 163 8 638 9 113
5.00 7 922 8 422 8 922 9 422 9 922 10 422 10 922

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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 286:52:80. Soybeans N:P:K – 105:35:46. Ground nuts N:P:K – 160:45:60. Sunflower N:P:K – 100:30:50.
  • 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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