55 Crop Maize (Bt) Sunflower Soybean 1) INCOME Yield target (t/ha) 5 1,20 11 SAFEX: Estimated price R4 455 R14 275 R4 455 Deductions R418 R63 R418 Net farm gate price R4 037 R14 212 R4 037 GROSS INCOME (R/ha) R20 185 R17 055 R44 407 2) VARIABLE EXPENDITURES Seed R3 348,97 R720,21 R2 110,99 Fertiliser R6 436,51 R1 925,19 R2 240,27 Lime R760 - - Fuel R934,17 R832,63 R940,50 Reparation R1 042,89 R1 156,93 R1 265,38 Crop protection R966,47 R1 177,92 R1 015,16 Input insurance R449,40 R249,42 R404,16 Grain hedging R1 289,43 R197,36 R138,16 Harvest insurance R845,73 R481,16 R1 064,25 Interest on production (R/ha) R1 537,03 R429,73 R585,14 TOTAL VARIABLE EXPENDITURE (R/ha) R17 610,58 R7 170,54 R9 764,01 TOTAL FIXED COST (R/ha) R1 839,63 R1 762,28 R1 956,02 TOTAL COST (R/ha) R19 450,21 R8 932,82 R11 720,03 3) GROSS MARGIN (R/ha) R5 315 R4 351 R3 234 4) NET MARGIN (R/ha) R3 476 R2 588 R1 278 Table 6.3: Budgets for the Eastern Free State. Source: Grain SA Table 6.4 (on page 56) presents the production costs for maize and soybeans in the Eastern Highveld. The variable cost of producing maize for a 6,5 t/ha yield target is estimated at around R20 683,10/ha. For soybeans, the table shows that a yield of about 2 t/ha is needed to break even at the given SAFEX price and total input cost levels. INCOME AND PRODUCTION COST
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