WINTER CROPS  |  2021 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 4.00
SAFEX simulated price / producer price: 2021 R/ton 4 955 4 955 6 700
Total deductions R/ton 575 538 160
– Transport differential R/ton 461 461 130
– Grade differential R/ton 3 – –
– Marketing, handling and statutory levies R/ton 111 77 30
Price premiums / Canola back-payment (10% of contracted price) R/ton – 65 670
Net farm gate price R/ton 4 380 4 212 7 210
Gross income R/ha R35 039 R31 593 R28 840

2. Variable expenditures
Contracting R/ha 1 418 1 418 1 407
Crop insurance R/ha 2 172 1 959 1 154
Fertilizer R/ha 8 316 6 760 4 523
Lime R/ha 1 035 1 035 –
Seed R/ha 1 656 1 383 1 058
Fuel R/ha 1 049 1 021 833
Herbicide R/ha 384 384 1 811
Insecticide R/ha 1 087 274 605
Fungicides R/ha 235 260 1 124
Marketing costs R/ha 200 225 39
Repairs and maintenance R/ha 894 894 931
Casual labour R/ha – – –
Irrigation: Water R/ha 1 026 1 060 975
Irrigation: Electricity R/ha 3 246 3 084 3 084
Aerial spray R/ha 675 225 –
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 830 829 769
Total variable expenditure R/ha R24 222 R20 809 R18 312
Total variable expenditure R/ton R3 028 R2 775 R4 578
3.1 Gross margin R/ha R10 817 R10 784 R10 528
3.2 Gross margin R/ton R1 352 R1 438 R2 632
Break-even yield T/ha 5.53 4.94 2.54
Break-even price R/ton R3 028 R2 775 R4 578
Source: GWK, GSA and BFAP, April 2021.
Gross margin comparison – Baseline: Northern Cape
Gross margin comparison – Baseline: 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
R3 380 282 1 127 1 972 2 817 3 662 4 507 5 352
R3 630 2 095 3 002 3 910 4 817 5 725 6 632 7 540
R3 880 3 907 4 877 5 847 6 817 7 787 8 757 9 727
R4 130 5 720 6 752 7 785 8 817 9 850 10 882 11 915
R4 380 7 532 8 627 9 722 10 817 11 912 13 007 14 102
R4 630 9 345 10 502 11 660 12 817 13 975 15 132 16 290
R4 880 11 157 12 377 13 597 14 817 16 037 17 257 18 477
R5 130 12 970 14 252 15 535 16 817 18 100 19 382 20 665
R5 380 14 782 16 127 17 472 18 817 20 162 21 507 22 852
Barley sensitivity analysis
Yield (t/ha)
Producers price 6.75 7.00 7.25 7.50 7.75 8.00 8.25
R3 212 875 1 678 2 481 3 284 4 088 4 891 5 694
R3 462 2 563 3 428 4 294 5 159 6 025 6 891 7 756
R3 712 4 250 5 178 6 106 7 034 7 963 8 891 9 819
R3 962 5 938 6 928 7 919 8 909 9 900 10 891 11 881
R4 212 7 625 8 678 9 731 10 784 11 838 12 891 13 944
R4 462 9 313 10 428 11 544 12 659 13 775 14 891 16 006
R4 712 11 000 12 178 13 356 14 534 15 713 16 891 18 069
R4 962 12 688 13 928 15 169 16 409 17 650 18 891 20 131
R5 212 14 375 15 678 16 981 18 284 19 588 20 891 22 194
Canola sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R6 210 1 871 3 423 4 976 6 628 8 081 9 633 11 186
R6 460 2 683 4 298 5 913 7 528 9 143 10 758 12 373
R6 710 3 496 5 173 6 851 8 528 10 206 11 883 13 561
R6 960 4 308 6 048 7 788 9 528 11 268 13 008 14 748
R7 210 5 121 6 923 8 726 10 528 12 331 14 133 15 936
R7 460 5 933 7 798 9 663 11 528 13 393 15 258 17 123
R7 710 6 746 8 673 10 601 12 528 14 456 16 383 18 311
R7 960 7 558 9 548 11 538 13 528 15 518 17 508 19 498
R8 210 8 371 10 423 12 476 14 528 16 581 18 633 20 686
Canola margin above/below wheat
Yield Price (R/ton)
R6 460 R6 710 R6 960 R7 210 R7 460 R7 710 R7 960
3.00 -9 749 -8 999 -8 249 -7 499 -6 749 -5 999 -5 249
3.25 -8 134 -7 321 -6 509 -5 696 -4 884 -4 071 -3 259
3.50 -6 519 -5 644 -4 769 -3 894 -3 019 -2 144 -1 269
3.75 -4 904 -3 966 -3 029 -2 091 -1 154 -216 721
4.00 -3 289 -2 289 -1 289 -289 711 1 711 2 711
4.25 -1 674 -611 451 1 514 2 576 3 639 4 701
4.50 -59 1 066 2 191 3 316 4 441 5 566 6 691
4.75 1 556 2 744 3 931 5 119 6 306 7 494 8 681
5.00 3 171 4 421 5 671 6 921 8 171 9 421 10 671

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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