Income & Cost Budgets / 2018/2019 / Summer Crops / Icb 2018 Mpumalanga Dryland

2018/2019 Income and Cost Budgets

Mpumalanga – dryland

Income and cost budgets for maize, soybeans and grain sorghum for Mpumalanga
Middelburg / Trichardt Ermelo
Crop Maize Soybeans Grain sorghum Maize Soybeans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 6.50 2.50 4.00 6.50 2.00
SAFEX simulated price / producer price: 2019 R/ton 2 494 5 250 3 172 2 494 5 250
Total deductions R/ton 260 59 63 329 60
– Transport differential R/ton 209 269
– Grade differential R/ton
– Marketing and handling R/ton 60 59 63 60 60
Price premiums R/ton
Net farm gate price R/ton 2 234 5 191 3 109 2 165 5 190
Gross income R/ha R14 524 R12 978 R12 434 R14 075 R10 381

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 552 1 583 373 535 1 266
Fertilizer R/ha 3 138 1 981 2 092 3 138 1 785
Lime R/ha 600 600 600
Seed R/ha 2 231 1 035 585 2 112 949
Fuel R/ha 869 689 923 869 668
Herbicide R/ha 1 027 1 051 617 1 027 1 051
Insecticide R/ha 95 259 428 95 259
Fungicides R/ha 395 230 695 395 230
Marketing costs R/ha
Repairs and maintenance R/ha 672 536 695 672 532
Casual labour R/ha 256 256
Aerial spray R/ha
Other expenditure R/ha 192
Total variable expenditure R/ha R9 835 R7 365 R7 200 R9 699 R6 741
Total variable expenditure R/ton R1 513 R2 946 R1 800 R1 492 R3 371
3.1 Gross margin R/ha R4 689 R5 613 R5 234 R4 377 R3 639
3.2 Gross margin R/ton R721 R2 245 R1 309 R673 R1 820
Source: BFAP, GSA and individual farmers – 2018.
Gross margin comparison – baseline: Mpumalanga
Gross margin comparison - Baseline: Mpumalanga

Gross margin per hectare: Mpumalanga

Soybeans sensitivity analysis: Middelburg / Trichardt
Yield (t/ha)
Producers price 1.75 2.00 2.25 2.50 2.75 3.00 3.25
R4 791 1 019 2 217 3 415 4 613 5 811 7 009 8 207
R4 891 1 194 2 417 3 640 4 863 6 086 7 309 8 532
R4 991 1 369 2 617 3 865 5 113 6 361 7 609 8 857
R5 091 1 544 2 817 4 090 5 363 6 636 7 909 9 182
R5 191 1 719 3 017 4 315 5 613 6 911 8 209 9 507
R5 291 1 894 3 217 4 540 5 863 7 186 8 509 9 832
R5 391 2 069 3 417 4 765 6 113 7 461 8 809 10 157
R5 491 2 244 3 617 4 990 6 363 7 736 9 109 10 482
R5 591 2 419 3 817 5 215 6 613 8 011 9 409 10 807
Soybeans margin above/below maize: Middelburg / Trichardt
Yield Price (R/ton)
R4 891 R4 991 R5 091 R5 191 R5 291 R5 391 R5 491
1.50 -4 717 -4 567 -4 417 -4 267 -4 117 -3 967 -3 817
1.75 -3 495 -3 320 -3 145 -2 970 -2 795 -2 620 -2 445
2.00 -2 272 -2 072 -1 872 -1 672 -1 472 -1 272 -1 072
2.25 -1 049 -824 -599 -374 -149 76 301
2.50 174 424 674 924 1 174 1 424 1 674
2.75 1 397 1 672 1 947 2 222 2 497 2 772 3 047
3.00 2 620 2 920 3 220 3 520 3 820 4 120 4 420
3.25 3 843 4 168 4 493 4 818 5 143 5 468 5 793
3.50 5 065 5 415 5 765 6 115 6 465 6 815 7 165
Soybeans sensitivity analysis: Ermelo
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 790 -753 444 1 642 2 839 4 037 5 234 6 432
R4 890 -628 594 1 817 3 039 4 262 5 484 6 707
R4 990 -503 744 1 992 3 239 4 487 5 734 6 982
R5 090 -378 894 2 167 3 439 4 712 5 984 7 257
R5 190 -253 1 044 2 342 3 639 4 937 6 234 7 532
R5 290 -128 1 194 2 517 3 839 5 162 6 484 7 807
R5 390 -3 1 344 2 692 4 039 5 387 6 734 8 082
R5 490 122 1 494 2 867 4 239 5 612 6 984 8 357
R5 590 247 1 644 3 042 4 439 5 837 7 234 8 632
Soybeans margin above/below maize: Ermelo
Yield Price (R/ton)
R4 890 R4 990 R5 090 R5 190 R5 290 R5 390 R5 490
1.00 -6 228 -6 128 -6 028 -5 928 -5 828 -5 728 -5 628
1.25 -5 005 -4 880 -4 755 -4 630 -4 505 -4 380 -4 255
1.50 -3 782 -3 632 -3 482 -3 332 -3 182 -3 032 -2 882
1.75 -2 560 -2 385 -2 210 -2 035 -1 860 -1 685 -1 510
2.00 -1 337 -1 137 -937 -737 -537 -337 -137
2.25 -115 110 335 560 785 1 010 1 235
2.50 1 108 1 358 1 608 1 858 2 108 2 358 2 608
2.75 2 331 2 606 2 881 3 156 3 431 3 706 3 981
3.00 3 553 3 853 4 153 4 453 4 753 5 053 5 353

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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