The Agricultural Business Chamber of South Africa (Agbiz) has reported a significant upswing in agricultural machinery sales, marking a breath of fresh air for farmers and agricultural experts alike.
Latest figures reveal that the sale of tractors and combine harvesters surged in April 2025, reflecting a growing confidence in the agricultural sector.
Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), noted that tractor sales were up by 5% year-on-year, with 527 units sold in April, continuing a positive trend observed over the past four months.
Even more remarkable were the figures for combine harvesters, which soared by 77% year-on-year, with 46 units moving off the shelves. These robust sales have alleviated concerns regarding the quality of crops, particularly in light of heavy rains that have affected agricultural operations.
“The heavy rains in April have caused concerns about crop quality. Still, there remains optimism about the yields, which supports the robust sales,” Sihlobo said.
“For example, the Crop Estimates Committee forecasts South Africa’s 2024-25 summer grain and oilseeds production at 18.01 million tons, 16% higher than the 2023-24 production season, representing a decent recovery from drought.”
Sihlobo added it was fair to say that the poor agricultural machinery sales performance in 2024 resulted from three major factors.
“Firstly, South Africa’s agricultural sector had higher machinery sales between 2020 and 2023. Improved farmers’ incomes supported higher sales due to an ample harvest and higher commodity prices,” he said.
“Thus, there was bound to be some correction, leading to a moderation in sales in 2024. Second, we struggled with a mid-summer drought in the 2023-24 season, weighing on farmers’ fortunes and worsening sales performance.”
Sihlobo said that the relatively higher interest rates for much of 2024 added to the economic pressures on the sector, leading to poor sales.
“This year, however, things are different, as the sales for the first quarter have already shown. The interest rates have eased somewhat from last year’s levels, although there remains uncertainty about the path ahead given the renewed risks to the global economy.”
Sihlobo added that 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.”
TLU SA general manager, Bennie van Zyl, said that this good news gave an indication that there was trust in the farming practices at this stage.
“We are expecting a good yield for farmers this year, and farmers, if they have the capacity, have to make sure that their tractors and other machinery are equipped for the job. If they have the means, they will replace old machinery and tractors to make sure they are in a good position for their job,” he said.
Van Zyl said that farmers believed that there was going to be a good yield this year.
“That is why they are investing in replacing their old machinery. It’s good news; however, I hope that farmers are responsible and don’t buy something that they can’t afford. At the end of the day, they still need to be able to pay for the equipment that they buy,” he said.
“This is good for the agricultural sector because there is an indication that there is more capacity in the sector and also the opportunity to upgrade their infrastructure and also align themselves with the new equipment and latest technology. The only thing is the harvest is a bit late this year, and there is some late rain, and we hope it doesn’t create a problem for sunflowers, soybean, and maize.”
Dawie Maree, head of information and marketing for agriculture at FNB Business, said that it was indeed good news for the agricultural sector.
“Machinery sales can be seen as a proxy for confidence in the industry. If farmers (and more specifically) are positive about the industry and the season ahead, then machinery sales normally increase, and vice versa,” Maree said.
“We’ve seen a better production season with the conditions in general more positive and hence an uptick in sales.”
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