South Africa’s agricultural machinery sector has experienced a sharp contraction as farmers defer major capital investments in the face of mounting operational uncertainties and high equipment costs.
Data released by the South African Agricultural Machinery Association (SAAMA) confirms that May 2026 tractor sales reached 542 units, marking an almost 15% decline compared to the 635 units sold during the same month last year. This downturn has pulled year-to-date tractor sales 1% below last year’s performance.
The slump was also pronounced in the high-value equipment segment, where only 27 combine harvesters were sold in May, 14 fewer than the 41 units sold in May last year, bringing year-to-date combine harvester sales to approximately 3% down compared to the same period last year.
Commenting on the market shift, Willie Human, chairman of SAAMA, noted that while the baseline sentiment remains optimistic, a convergence of risks is forcing a change in buying behaviour.
“Although market sentiment remains positive, an increasing number of uncertainties are overhanging the market. Amongst others these are current summer crop yields, input costs, commodity prices, interest rates and weather prospects for the forthcoming summer cropping season.
“These uncertainties are driving farmers towards postponing their equipment buying decisions.
“With maize harvesting, in particular, having been delayed because of late rains, it will probably only be in a few months’ time that direction within the industry will be seen. Current predictions of tractor sales for the 2026 calendar year are still that these will be similar, or marginally lower, than those in 2025,” Human said.
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Farmers turn to second-hand market
For primary producers on the ground, the steep cost of new equipment has made traditional financing unviable, forcing a heavy reliance on the pre-owned market despite the operational risks involved.
Simemo Nkosi, a farmer in Mpumalanga and the youth grain chairperson for the African Farmers’ Association of South Africa (Afasa), currently relies on an aging, second-hand tractor that frequently breaks down.
He explained that the combination of astronomical retail prices and volatile farm returns makes purchasing new machinery an impossible gamble.
“Agricultural machinery is very expensive; everyone knows that. Farmers are now venturing to buy second-hand tractors, planters, or any machinery for the farms because they are so expensive. Second-hand is affordable, and we are able to buy it with cash because it is less costly,” Nkosi said.
Nkosi highlighted that while modern machinery is critical for operational efficiency, ongoing systemic threats make it difficult to guarantee a return on a brand-new asset.
“Buying a new one is a challenge, and the returns are not certain. You cannot be sure that you will recover your costs or get profits because, as farmers, we have a lot of challenges, like climate change and foot-and-mouth disease (FMD). You end up not making money if you buy new equipment.
“Even though we need new equipment to work fast and efficiently enabling us to do everything at a fast pace to get a maximum yield I cannot go to the bank and buy a new one when I am not sure I will get that money back,” Nkosi added.
Alternative funding and machinery hiring
Where acquisitions do occur, they increasingly rely on pooled family capital and secondary rental streams to offset the heavy financial burden.
Aphola Mbotshwa, a farmer based in the Eastern Cape, managed to secure a tractor early this year, though the purchase required intensive planning and familial support.
“I was fortunate enough that at the beginning of this year I was able to purchase a tractor, with assistance from my parents as well,” Mbotshwa said, noting that he had to save up for eight months to make the acquisition possible.
To mitigate the ongoing costs of ownership and turn the machinery into a profitable asset, Mbotshwa has integrated his tractor into the local agricultural economy by servicing neighboring producers.
“I am actually gaining from the tractor as it is being hired out,” he said.
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