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Farming machine sales continue to plough ahead on improved sentiment

Improved weather and easing interest rates lift sales of tractors and combine harvesters

SA's agricultural machinery market showed robust growth in April, with tractor and combine harvester sales both posting strong year-on-year gains. Picture: UNSPLASH.COM
SA's agricultural machinery market showed robust growth in April, with tractor and combine harvester sales both posting strong year-on-year gains. Picture: UNSPLASH.COM

SA’s agricultural machinery market maintained its upward trajectory in April, though at a more subdued pace than the sharp January rebound that ended nearly two years of monthly declines.

The latest data from the SA Agricultural Machinery Association (Saama) shows that tractor sales rose 5.4% year on year to 527 units.

Combine harvester sales jumped 77% to 46 units in April — a significant increase from a low base of 26 units in the same month last year.

Year-to-date sales underscore the improving trend. Between January and April, tractor sales reached 2,291 units, up 21.7% from the same period in 2024, while combine harvester sales rose 37.2% to 107 units.

“Current predictions are that tractor sales will be similar, or marginally more, than the 6,463 units sold last year,” said Saama chair Willie Human.

“Combine harvester sales in 2025 also look as though they are going to be higher than the 201 machines sold last year.”

Though April’s figures reflect a continuation of the recovery, they come off a low base and are more muted than the surge seen at the start of the year.

In January, tractor sales jumped 27% year on year — the first increase after 21 consecutive months of decline. However, even that strong showing reached only 457 units, still well below the two-year monthly average of 617 units.

The agriculture sector — worth more than R100bn and vital for both employment and export earnings — came under intense pressure in 2024.

Wandile Sihlobo, chief agricultural economist at Agbiz, noted that the midsummer drought in the 2023/24 season led to a 23% decline in summer grain and oilseed production, weakening farmer incomes and delaying machinery purchases. Higher interest rates through much of 2024 added further pressure.

In 2024’s third quarter, output contracted 28.8% on a quarterly, seasonally adjusted basis, later revised to a still severe 19.7% drop. It was one of the sharpest quarterly declines in decades, significantly weighing on the country’s overall GDP performance.

However, Sihlobo said this picture was changing in 2025.

“The interest rates have eased somewhat from last year’s levels, though there remains uncertainty about the path ahead given the renewed risks to the global economy.

“Also, agricultural production conditions are favourable across most commodities. Also worth noting is that some farmers may start with machinery replacement in the coming months. All this will support the sales of tractors and combine harvesters,” he said.

Heavy rains in April have caused some delays in harvesting and created concern about crop quality, Sihlobo said, but optimism persists.

The crop estimates committee forecasts SA’s 2024/25 summer grain and oilseed production at 18.01-million tonnes — a 16% increase on the previous season.

Late-season rainfall has slowed preparations for the next planting cycle that may postpone some equipment purchases.

“Sales of agricultural machinery are therefore likely to be delayed because of this,” Human said.

“However, market sentiment is still positive, with farmers waiting to see what the yields and quality of their harvests are going to be once they have harvested their crops.”

marxj@businesslive.co.za

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