South Africa’s agricultural machinery market is showing renewed strength in 2025, with encouraging sales figures highlighting growing confidence in the sector. After a challenging year in 2024, sales of both tractors and combine harvesters have rebounded sharply in the first five months of this year, signalling a healthier environment for farmers and agribusinesses alike.
Encouraging sales signal sector recovery
Tractor sales have risen for the fifth consecutive month, increasing by 12% year-on-year in May 2025, with 635 units sold. Even more striking is the performance of combine harvesters, with sales up a notable 64% compared to May last year, totaling 41 units, according to Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa (Agbiz).
Sihlobo explains the drivers behind this rebound. “The increase in sales primarily reflects the positive sentiment in the sector regarding the 2024-25 crop and horticulture harvest, driven by favourable weather conditions and base effects following weak sales in 2024,” says Sihlobo.
Much of the current optimism stems from improved agricultural output projections following several seasons of weather-related challenges. The Crop Estimates Committee now forecasts South Africa’s 2024-25 summer grain and oilseeds production at 17.98 million tonnes, a significant 16% increase from the previous season, representing a welcome recovery from the damaging drought conditions experienced in recent years.
Weather, drought, and financial pressure behind 2024’s slump
However, it has not been entirely smooth sailing. Heavy rains in April raised concerns about the quality of some crops, particularly in localised areas. “The heavy rains in April have caused concerns about the crop quality, and we are seeing challenges in a few areas,” notes Sihlobo. Still, despite these localised setbacks, the broader sentiment remains upbeat as strong yields continue to support purchasing decisions.
Looking back, Sihlobo points out that the slump in machinery sales in 2024 was due to a combination of factors. “The poor agricultural machinery sales performance in 2024 resulted from three major factors,” he explains. First, robust sales between 2020 and 2023, supported by strong harvests and favourable commodity prices, created a natural cooling-off period. Second, the mid-summer drought in the 2023-24 season negatively impacted farmers’ incomes and reduced their ability to invest in new equipment. Finally, higher interest rates throughout much of 2024 added further financial pressure, curbing investment in capital goods like tractors and harvesters.
Pent-up demand supports 2025 momentum
Conditions have now improved in several respects. Interest rates have eased somewhat from the higher levels seen last year, offering some financial relief. “Although uncertainty remains about the path ahead, given the renewed risks to the global economy, conditions are far better than they were a year ago,” says Sihlobo.
Moreover, as many farmers postponed purchases during the difficult 2024 season, there is now pent-up demand for equipment replacement and upgrades. “Some farmers may start with machinery replacement in the coming months,” adds Sihlobo, suggesting that sales momentum may continue as the year progresses.
South Africa’s agricultural machinery market is currently benefiting from a combination of improved weather conditions, a promising crop outlook, more favourable financial conditions, and deferred demand finally coming back into the market. While uncertainties remain, particularly regarding global economic trends and future interest rate movements, the sector enters the second half of 2025 with renewed momentum.