Recent data showed South Africa’s farm machinery sales on a steady upward trajectory this year, restoring faith in the sector after nearly two years of decline.
The sales rally points to an upbeat mood in the farming sector as favourable weather conditions fuel a recovery in sentiment, with farmers increasingly optimistic about their outlook for the 2025-26 agricultural season, which began in October.
The latest data from the South African Agricultural Machinery Association (Saama) shows that tractor sales rose by nearly a fifth in the first 11 months of 2025 compared to the same period last year.
Additionally, combine harvester sales for the 11 months to end-November amounted to 200 units, up 3% year on year from the previous year.
Agbiz chief agricultural economist Wandile Sihlobo attributed the gains to recent interest rate cuts and favourable weather conditions, particularly for field crops, horticulture and wine grape harvests.
“The 2025-26 season will likely deliver another year of ample harvests, as La Niña rains are expected to support production conditions across various subsectors of agriculture,” said Sihlobo.
“In the case of summer grains and oilseeds, farmers intend to plant 4.1-million hectares in the 2025-26 season, up 1% from the previous year. We will likely see decent plantings in other crops.”
The agriculture sector — worth more than R100bn and vital for both employment and export earnings — came under intense pressure in 2024.
Business Day reported 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 by a revised 19.7% — one of the sharpest quarterly declines in decades, significantly weighing on the country’s overall GDP performance.
The outlook shifted in January, when tractor sales jumped 27% year on year — the first increase after 21 consecutive months of decline, even though volumes were still well below the previous two years’ monthly average.
“We now have comfort that South Africa’s agricultural machinery sales will be strong in 2025, resembling the gains in agriculture,” said Sihlobo.
“We are optimistic that we can continue on this path through 2026, as the cost of capital remains affordable and the sector is likely to deliver another year of ample harvests.”
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