Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 Kwazulu Natal Dryland

2018/2019 Income and Cost Budgets

KwaZulu-Natal – dryland

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bloedrivier region)
KwaZulu-Natal: Bloedrivier
Crop Maize Soybeans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 6.50 2.50
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250
Total deductions R/ton 377 59
– Transport differential R/ton 317
– Grade differential R/ton
– Marketing and handling R/ton 60 59
Price premiums R/ton
Net farm gate price R/ton 2 117 5 191
Gross income R/ha R13 763 R12 978

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 523 1 583
Fertilizer R/ha 3 748 1 938
Lime R/ha 600
Seed R/ha 2 727 1 035
Fuel R/ha 896 501
Herbicide R/ha 1 027 1 051
Insecticide R/ha 95 259
Fungicides R/ha 695 530
Marketing costs R/ha
Repairs and maintenance R/ha 680 446
Casual labour R/ha 256
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R11 246 R7 344
Total variable expenditure R/ton R1 730 R2 938
3.1 Gross margin R/ha R2 517 R5 635
3.2 Gross margin R/ton R387 R2 254
Source: BFAP, GSA and individual farmers – 2018.
Gross margin comparison – baseline: KwaZulu-Natal (Bloedrivier region)
Gross margin comparison - Baseline: KwaZulu-Natal (Bloedrivier Region)

Gross margin per hectare: KwaZulu-Natal (Bloedrivier)

Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 791 1 041 2 239 3 437 4 635 5 832 7 030 8 228
R4 991 1 216 2 439 3 662 4 885 6 107 7 330 8 553
R4 991 1 391 2 639 3 887 5 135 6 382 7 630 8 878
R5 091 1 566 2 839 4 112 5 385 6 657 7 930 9 203
R5 191 1 741 3 039 4 337 5 635 6 932 8 230 9 528
R5 291 1 916 3 239 4 562 5 885 7 207 8 530 9 853
R5 391 2 091 3 439 4 787 6 135 7 482 8 830 10 178
R5 491 2 266 3 639 5 012 6 385 7 757 9 130 10 503
R5 591 2 441 3 839 5 237 6 635 8 032 9 430 10 828
Soybeans margin above/below maize
Yield Price (R/ton)
R4 891 R4 991 R5 091 R5 191 R5 291 R5 391 R5 491
1.50 -2 524 -2 374 -2 224 -2 074 -1 924 -1 774 -1 624
1.75 -1 301 -1 126 -951 -776 -601 -426 -251
2.00 -78 122 322 522 722 922 1 122
2.25 1 144 1 369 1 594 1 819 2 044 2 269 2 494
2.50 2 367 2 617 2 867 3 117 3 367 3 617 3 867
2.75 3 590 3 865 4 140 4 415 4 690 4 965 5 240
3.00 4 813 5 113 5 413 5 713 6 013 6 313 6 613
3.25 6 036 6 361 6 686 7 011 7 336 7 661 7 986
3.50 7 259 7 609 7 959 8 309 8 659 9 009 9 359

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 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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