Africa Estate Farm Tools

Crop budget: what does this crop leave per hectare?

Choose your region and crop: Grain SA's own 2026/27 budget fills in the yield, the farm-gate price and every cost line. Type your own figures over any of them and the answer changes as you type: the gross income, the gross margin after the variable costs, and the result after the overheads you enter.

1. Your crop

Leave empty for per hectare only.

Choosing another crop starts from that crop's Grain SA budget; your hectares stay.

2. Yield and price

Grain SA: 6.20 t/ha, the five-year provincial average (2020/21 to 2024/25).
Grain SA: SAFEX estimate R 4 312/t less deductions R 406.25/t = R 3 905.75/t (updated 2026-09-04). Your buyer's price wins.

3. Variable costs, R per hectare

Grain SA's own lines for this crop. Type over any of them; an empty field keeps Grain SA's figure.

Total variable costs: R 20 316 a hectare.

4. Overheads, R per hectare

Grain SA: R 7 499, given as one total; Grain SA publishes no breakdown.

Assumptions used
  • Every default is Grain SA summer grain production budgets 2026/27 (Excel workbooks, Crop Comparison sheets), updated 2026-09-04, read 2026-11-01.
  • Grain SA's variable costs already include the interest on production credit and, for most crops, grain price hedging; do not add them twice.
  • Grain SA gives the fixed (overhead) cost as one total per crop; no breakdown is published.
  • Gross income = yield x farm-gate price. Gross margin = gross income less variable costs. The result after overheads = gross margin less the overheads entered.

The answer

At 6.20 t/ha and R 3 906/t, maize brings R 24 216 a hectare. After variable costs the gross margin is R 3 900 a hectare; after the overheads entered (R 7 499) the result is R 3 599 a hectare short.

Gross income / ha
R 24 216
Gross margin after variable costs / ha
R 3 900
Result after the overheads entered / ha
-R 3 599
RPer hectare
Gross incomeR 24 216
Variable costs-R 20 316
Gross margin after variable costsR 3 900
Overheads entered-R 7 499
Result after the overheads entered-R 3 599

Break-even at this price: 5.20 t/ha to cover the variable costs, 7.12 t/ha with the overheads. At this yield: a farm-gate price of R 3 277/t, or R 4 486/t with the overheads.

Not a profit: tax, depreciation and the replacement of machinery and equipment are not in these figures.

Put this crop into "Can this farm pay?"Ask Africa EstateRead: Crop farms in South Africa

Crop farms for sale

Africa Estate farms for sale; open one and press "Farm tools".

What this does not tell you

  • Grain SA's budgets are regional averages. Your own yield, input costs and buyer's price win.
  • The result after overheads is not a profit: tax, depreciation and the replacement of machinery and equipment are not in it.
  • Grain SA gives the overheads as one total per crop, without a breakdown.
  • Prices move. The SAFEX estimate and the deductions are Grain SA's, dated; check your buyer's price on the day.
  • This is an estimate, not financial advice. Speak to your study group, your bank or your adviser before a decision.

Sources

Estimate, not advice. Confirm every figure with your bank, attorney and tax practitioner before a decision.