After 14 consecutive months of growth, South Africa’s agricultural machinery market has hit a bump in the road. March sales dropped – with tractor sales down 8% and combine harvester sales plummeting 22% compared to last year.
By Nico van Burick, senior journalist at African Farming and Landbouweekblad
March saw 618 tractors sold versus 671 last year, while combine harvester sales fell to just 29 units from 37 in March 2025. However, year-to-date figures are still positive – tractor sales remain 2% higher than last year, with combine harvesters up 6%, according to the latest figures released by the South African Agricultural Machinery Association (SAAMA).
Although market sentiment remains positive, several external factors – such as the value of the rand and current diesel and fertiliser prices – are discouraging farmers from investing in capital equipment.
Willie Human, chairperson of Saama, says low grain prices – which are placing significant pressure on producers – remain the biggest concern with input costs adding further strain.
With harvest season approaching, farmers will soon assess conditions before planning next season’s investments. While summer crop production estimates look favourable, the abundance is driving down commodity prices. “I expect sales to be slightly lower for the remainder of the year,” Human says. “There are too many uncertainties and farmer sentiment is somewhat negative.”
According to industry estimates, tractor sales for the 2026 calendar year are expected to be similar to, or marginally lower than, those recorded in 2025.
Also read: Farmers: SA not yet ready for autonomous and electric tractors
Economic Pressure Reflected in Sales
Corné Louw, head of applied economics and member services at Grain SA, says January and February’s strong sales were surprising given tough economic conditions, making March’s decline more predictable.
“The harvest is good, but the economy is weak and grain prices are so low that profitability is under significant pressure. Farmers want the latest technology to stay competitive, but they’re likely to be more cautious with purchases.”
Also read: Strong start to 2026 for SA’s agricultural machinery sales
Strong Production Outlook Despite Uncertainty
Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz), cautions against reading too much into March’s decline after 14 consecutive months of strong performance. Sales remain well above long-term averages.
“Middle East conditions and rising fuel costs are impacting the sector, but we need more time to determine the sales trajectory.”
Despite these headwinds, production remains robust. Grain and oilseed output is estimated at 20.3 million tonnes – just 1% below last season’s near-record harvest – while citrus exports are projected to grow 3-5% to 210-215 million cartons.
Vehicle Sector Shows Strong Growth
Meanwhile, the vehicle industry body National Association of Automobile Manufacturers of South Africa (NAAMSA) reports March new vehicle sales hit 58 060 units – the strongest March since 2007 and up 17.3% year-on-year.
Commercial vehicles showed particularly robust growth, with light vehicles (bakkies and minibuses) up 15.7% and medium to heavy vehicles rising around 14%. Investment decisions in these sectors depend on infrastructure spending, cargo volumes, and business confidence, according to NAAMSA.
Also read: SA’s new generation of farmers: How training, technology and smart markets are driving real profits
