COMBUD CROP BUDGETS
FIELD CROPS
2010 / 2011
COMPILED BY :
E. N. C. WHITEHEAD
C. G. ARCHER
PUBLISHED BY :
KZN AGRICULTURE, ENVIRONMENT AND RURAL DEVELOPMENT
OBTAINABLE FROM :
DIRECTORATE : A. D. S. S.
Agricultural Economics and Marketing
P.O. Box 1244
Hilton, 3245
Tel :
E-Mail :
Fax :
(033) 343 8035 or 343 8067
Neil.Whitehead@kzndae.gov.za
Gail.Archer@kzndae.gov.za
(033) 355 9250
i
A.
INDEX OF CROPS
ii
B.
OBJECTIVES AND APPLICATION ......................................................................................iii
C.
EXPLANATORY NOTES ......................................................................................................iii
D.
PRINTOUTS ..........................................................................................................................iii
E.
TERMINOLOGY ....................................................................................................................iv
GROSS INCOME...................................................................................................................iv
ALLOCATED COSTS ...........................................................................................................iv
DIRECTLY ALLOCATABLE VARIABLE COSTS................................................................iv
INDIRECTLY ALLOCATABLE VARIABLE COSTS ............................................................iv
LABOUR ...............................................................................................................................iv
GROSS MARGIN ..................................................................................................................iv
F.
PROVINCIAL OFFICE...........................................................................................................iv
EXAMPLE PRINTOUT ......................................................................................................................v
GROSS MARGIN ...................................................................................................................v
MACHINERY .........................................................................................................................vi
PARAMETRIC ANALYSIS...................................................................................................vii
INFORMATION FROM THESE COMBUD BUDGETS MAY ONLY BE USED WITH
DUE RECOGNITION TO THE DIVISION: AGRICULTURAL ECONOMICS AND
MARKETING (A.D.S.S.), KWAZULU - NATAL DEPARTMENT OF AGRICULTURE,
ENVIRONMENTAL, AND RURAL DEVELOPMENT
ii
INDEX : KWAZULU - NATAL COMBUD BUDGETS
FIELD CROPS
2010 / 2011
COTTON
Dryland ....................................................................1
COTTON
Irrigated....................................................................2
DRY BEANS
Dryland ....................................................................3
DRY BEANS
Irrigated....................................................................4
GRAIN SORGHUM
Dryland ....................................................................5
GRAIN SORGHUM
Irrigated....................................................................6
GROUNDNUTS
Dryland ....................................................................7
LUPINS
Dryland ....................................................................8
LUPINS
Irrigated....................................................................9
MAIZE
(CONVENTIONAL)
Dryland ..................................................................10
MAIZE
(CONVENTIONAL)
Dryland ..................................................................11
MAIZE
(BERGVILLE)
Dryland ..................................................................12
MAIZE
(BERGVILLE)
Irrigated..................................................................13
MAIZE
(NO TILL)
Dryland ..................................................................14
MAIZE
(NO TILL)
Irrigated..................................................................15
SOYABEAN (CONVENTIONAL)
Dryland ..................................................................16
SOYABEAN (CONVENTIONAL)
Irrigated..................................................................17
SOYABEAN (NO TILL)
Dryland ..................................................................18
SOYA BEAN (NO TILL)
Irrigated..................................................................19
SUNFLOWER
Dryland ..................................................................20
WHEAT
Dryland ..................................................................21
WHEAT
Irrigated..................................................................22
iii
A.
OBJECTIVES AND APPLICATION
Income and cost budgets are drawn up as a short-term planning aid. When planning for the
medium- or long-term, various fixed costs are involved, and these costs are not included in the
COMBUD budgets.
The budgets were compiled with the following in mind:
AYIELD is the long-term, realistically attainable yield under normal climatic conditions, and with
acceptable management practices.@ The inputs and practices used in these budgets are
aimed at achieving this yield.
B.
EXPLANATORY NOTES
The use of the term Ainterest on operating capital@ is based on the assumption that use is
made of production loans. It is assumed that the input is purchased in the month during which
it will be used. Compound interest is calculated monthly. It is also assumed that the production
loan is repaid in the harvesting month (or capital month). If production loans are not used then
this Ainterest on operating capital@ can be added to the gross margin.
The use of trade names in the budgets is purely for information purposes. The Department
neither endorses nor promotes any of these products. The type of chemical and it=s
application must be according to the manufacture=s directions, and in consultation with
relevant experts.
Although all possible precautions were taken to ensure the correctness of these budgets, the
Department does not accept responsibility for any incorrect information herein.
Experts should be consulted.
C.
PRINTOUTS
Gross Margins
The gross margin of a crop is calculated for one hectare, as well as a logical unit (e.g. ton).
Income, levies and inputs are listed here. Machinery, implement and labour costs are given as
totals. In budgets, such as an establishment budget, where there is no yield, only the cost per
hectare is reflected.
If more information is required for a specific budget, the following printouts can be obtained on
request from the relevant Provincial office.
Machinery
1)
A summary of the variable costs for tractors, implements and other machinery per
activity.
2)
A summary of fixed and variable costs for tractors, implements and other machinery per
activity.
Parametric Analysis
This gives the gross margins under varying prices and yields. The following deviations are
used for both price and yield.
-10%, -5%, 0%, +5%, +10%
iv
D.
TERMINOLOGY
GROSS INCOME
Since these are income and costs budgets actual incomes are used, and not the gross value of
production.
ALLOCATED COSTS
The following costs are included:
Directly Allocatable Variable Costs
These are costs which can be easily determined by means of simple record-keeping; e.g.
fertilizers, chemicals, temporary (seasonal) labour, contract work, etc.
Indirectly Allocatable Variable Costs
These are costs that cannot normally be allocated to a specific enterprise without detailed
record-keeping; e.g. fuel costs, repair costs, lubrication costs, etc. These costs are included
because they can be calculated according to specific norms.
Labour
The cost of regular labour is not included in these budgets. However, the cost of casual labour
is included and shown in the relevant budgets.
GROSS MARGIN
It is normally assumed that the AGross Margin@ is the difference between the Gross Value of
Production and Directly Allocatable Variable Costs. Since these budgets are all short-term
planning aids and the extent of Indirectly Directly Allocatable Variable Costs and labour costs
are also required, the AGross Margin in these budgets reflects the difference between Gross
Income and Total Allocatable Variable Costs (excluding regular labour).
v
E.
PROVINCIAL OFFICES
The province indicated on the Gross Margin page is responsible for and maintains that particular
budget. You can contact the KwaZulu-Natal provincial office at the following address:
Directorate: Agricultural Economics and Marketing (A.D.S.S.)
Department of Agricultural, Environmental, and Rural Development
P.O. Box 1244
Hilton. 3245
Tel : 033 - 3438035 or 033 - 3438067
Fax : 033 - 3559250
E-mail: Neil.Whitehead@kzndae.gov.za or Gail.Archer@kzndae.gov.za
vi
EXAMPLE PRINTOUT
Country : South Africa
Province: KwaZulu-Natal
GROSS MARGIN
MAIZE - CONVENTIONAL
DRYLAND
Unit
GROSS INCOME
Product Income (Crops)
Maize Grain
Price Per
Unit
Qty
Per Ha
Value Per
Yield Unit
6450.00
1290.00
6450.00
1290.00
TOTAL ALLOCATABLE VARIABLE COSTS
5210.19
1042.04
DIRECTLY ALLOCATABLE VARIABLE COSTS
4274.20
854.84
A) PRE-HARVEST COST
Maize Seed
Fertilizer
KCl
LAN 28 %
MAP (33)
Lime and Manure
Dolomitic Lime
Weed Control
Atrazine SC
Eptam Super
Pest Control
Monostem
Bulldock
Fungicide Control
Punch Extra
Wetting Agent
Tronnic
Contract Work
Aerial Spray - Hire
Crop Insurance
Maize
676.84
136.00
Ton
B) HARVEST COSTS
Contract Work
Harvest
Marketing Cost
Transport
1290.00
5.00
Kg
34.00
20.00
3384.20
680.00
Ton
Ton
Ton
2660.35
1936.04
3828.42
0.15
0.16
0.18
399.05
309.77
689.12
79.81
61.95
137.82
Ton
525.00
0.60
315.00
63.00
Litre
Litre
64.43
47.15
4.00
4.00
257.72
188.60
51.54
37.72
Litre
Litre
79.99
32.84
0.80
0.10
63.99
3.28
12.80
0.66
Litre
211.95
0.75
158.96
31.79
Litre
29.10
0.60
17.46
3.49
Ton
64.50
2.50
161.25
32.25
890.00
178.00
Ha
500.00
1.00
500.00
100.00
Ton
65.00
6.00
390.00
78.00
2175.80
435.16
INDIRECTLY ALLOCATABLE VARIABLE COSTS
935.99
187.20
PRE-HARVEST COST
Fuel
Repairs and Maintenance
935.99
527.41
408.58
187.20
105.48
81.72
TOTAL PRE-HARVEST COSTS
TOTAL HARVEST COSTS
4320.19
890.00
864.04
178.00
GROSS MARGIN ABOVE TOTAL ALLOCATABLE VARIABLE COSTS
1239.81
247.96
MARGIN ABOVE DIRECTLY ALLOCATABLE VARIABLE COSTS
vii
MACHINERY : FIXED AND VARIABLE COSTS
Month
Activity
Power
Source
Fixed Costs Per Year
Implement
Depr.
Interest
Lic & Ins
26.25
15.84
2.57
Variable Costs Per Year
Total
Fuel
Repairs
Total
44.66
77.22
28.23
105.45
Sep
Deep
Plough
66 Kw H.P.
3 tine plough
Sep
Disc
59 Kw H.P.
2 m harrow
20.02
12.26
2.21
34.50
69.03
23.40
92.43
Sep
Lime
45 Kw L.P.
5t lime spreader
77.97
35.75
1.76
115.48
40.95
81.97
122.92
Oct
Disc
59 Kw H.P.
2 m harrow
20.03
12.26
2.21
34.50
69.03
23.40
92.43
Oct
Plant
59 Kw H.P.
4 row planter
76.00
42.05
2.21
120.66
53.69
74.25
127.94
Oct
Fertilize
45 Kw L.P.
Single disc (350l)
14.68
9.15
1.76
25.59
40.95
25.77
66.72
Nov
Pest Control
45 Kw L.P.
10 m boom-sprayer
29.61
17.03
1.76
48.40
40.95
25.77
66.72
Dec
Spray
45 Kw L.P.
10 m boom-sprayer
29.61
17.03
1.76
48.40
40.95
25.77
66.72
Jan
Spray
45 Kw L.P.
10 m boom-sprayer
29.61
17.03
1.76
48.40
40.95
25.77
66.72
viii
PARAMETRIC ANALYSIS
Country : South Africa
Province: KwaZulu-Natal
MAIZE - CONVENTIONAL
DRYLAND
GROSS MARGINS PER HECTARE
When the PRICE of Maize varies from R1161 to R1419 per ton
When the QUANTITY of Maize varies from 4.50 to 5.50 tons per hectare
Price of Maize (R/Ton)
Tons of
Maize/Ha
- 10.00%
- 5.00%
0.00%
0.05
10.00%
1161.00
1225.50
1290.00
1354.00
1419.00
- 10.0%
4.50
14.31
304.56
594.81
885.06
1175.31
- 5.00%
4.75
304.56
619.94
917.31
1223.69
1530.06
0.00%
5.00
594.81
917.31
1239.81
1562.31
1884.81
5.00%
5.25
885.06
1223.69
1562.31
1900.94
2239.56
10.00%
5.50
1175.31
1539.06
1884.81
2239.56
2594.31
ix