August tractor sales surge by 22% in South Africa

Agricultural Machinery Sales indicate that August tractor sales of 700 units were 22% more than the 572 units sold in August last year. There have been welcome reactions from agricultural associations about the increase in machinery sales.

Willie Human, the chairman of the South African Agricultural Machinery Association, said year-to-date tractor sales are now approximately 23% up on last year. “ Five combine harvesters were sold in August, the same number as were sold in August last year. On a year-to-date basis, combine harvester sales are now almost 26% up on last year.”

Human added that sentiment in the market remains positive, and this is reflected in the good sales of tractors and combine harvesters currently being experienced. “The recently released winter crop estimates indicate that production of all these crops, with the exception of barley, will be significantly higher than last year. Harvesting of summer crops was much delayed this year, but yields have, in the main, been good. Prospects for the forthcoming summer cropping season look favourable.”

Human said that current predictions are still that tractor sales will be between 10 and 15% more than last year. “Combine harvester sales in 2025 also look as though they are going to be higher than last year.”

Wandile Sihlobo, the chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said one of the interlinked industries that tends to benefit when the agricultural sector is thriving is the agricultural machinery industry. “This year is no different; South Africa’s agricultural machinery sales have remained reasonably robust since the start of 2025. I suspect the sales are likely to continue at this encouraging pace. If we consider the details, the tractor sales have increased for the past eight consecutive months, while the combine harvester sales only cooled in the recent few months, having started on solid momentum.”

Sihlobo added that the recent data for August also paints a mixed picture. For example, the tractor sales are up 22% y/y, with 700 units sold. “Meanwhile, the combine harvester sales were flat, with five units sold. The soft sales in combine harvester sales are not a significant concern given the higher volume of sales in the past few months. The increase in agricultural machinery sales primarily reflects the positive sentiment in the sector regarding the 2024-25 field crop, horticulture, and wine grape harvest, supported by the favourable weather conditions.”

Sihlobo said sentiment in the sector is also reasonably optimistic, with the Agbiz/IDC Agribusiness Confidence Index at 63 points in the third quarter, which is well above the 50-neutral mark. “We expect South Africa’s agricultural machinery to remain strong throughout the year. In addition to the better agricultural production conditions, the interest rates have eased somewhat from last year’s levels. Also worth noting is that some farmers may continue with machinery replacement in the coming months, which ultimately supports the sales.”

Francois Rossouw, the CEO of the Southern African Agri Initiative (Saai), said the rise in tractor sales is indeed a very positive sign. It shows that farmers are optimistic about the upcoming season and are investing in their operations. “This kind of confidence usually goes hand-in-hand with favourable conditions, whether it's better rainfall, good commodity prices, or improved support systems. More investment in machinery not only points to expected growth and improved harvests but also signals a commitment to long-term productivity and food security in South Africa.”

Farming association TLU SA general manager, Bennie van Zyl, said this is positive news. “We are thankful that farmers are in this position because of this last year's harvest season. It seems that most farmers have had a better crop harvest this season. It is important for farmers to have new equipment and to make use of new technology, which is good news.”

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