Sales of Russian agricultural machinery in Russia fall 32.1% over 6M to 75.6 bln rubles - Rosspetsmash

MOSCOW. Aug 4 (Interfax) - Sales of domestically produced agricultural machinery in the Russian market decreased 32.1% to 75.6 billion rubles in H1 2025, the Russian Association of Specialized Machinery and Equipment Manufacturers (Rosspetsmash) said.

The pace of market decline has slightly slowed. The drop was 32.9% in Q1, with sales amounting to 38.3 billion rubles.

A decline in shipments over the half-year continues to be recorded across almost all major types of agricultural machinery. In particular, deliveries of grain harvesters fell 59.2% (to 842 units), forage harvesters 39% (to 119 units) and agricultural tractors 36.4% (to 1,374 units). Declines were also noted in sales of grain cleaning machines (down 33.8%), harrows (down 22.5%), sprayers (down 16.9%), cultivators (down 10.5%), mowers (down 8%), headers (down 7.8%), balers (down 7.4%) and seeders (down 3.5%).

Rosspetsmash reported growth in shipments for H1 for fertilizer spreaders (up 54.2%) and plows (up 9.5%).

The association noted the positive impact of anti-crisis measures implemented by the Industry and Trade Ministry and the Agriculture Ministry to support the agricultural machinery industry. These measures include a new preferential leasing program from the Industry and Trade Ministry and Dom.RF, additional funding for Rosagroleasing operations, a reduced interest rate under the preferential lending program for farmers purchasing agricultural machinery and the temporary zeroing of export duties on grain.

"There remain a number of key problems that give little hope for a return to positive dynamics in the agricultural machinery market: the extremely high key rate of the Central Bank, the low profitability of the agricultural business, and insufficient funding of Program 1432 [subsidizing discounts on agricultural machinery to sell it to farmers on preferential terms], which does not allow all interested farms to purchase machinery at a discount even under the current difficult conditions. Today, the agricultural business is in such a situation that even against the backdrop of the temporary zeroing of export duties on grain to increase exports, farmers require additional support. For example, a significant increase in subsidies for the transportation of agricultural products," the association said.

Rosspetsmash proposes setting the annual funding of Program 1432 at 10% of agricultural machinery shipments to the domestic market. The association also considers it appropriate to explore increasing the discount on self-propelled agricultural machinery, which currently ranges from 10%-15% depending on the region, in order to reduce the financial burden on farmers. In addition, Rosspetsmash suggests that agricultural machinery purchased through federal and regional budgets, as well as through preferential leasing, should be exclusively of Russian production.

However, the association acknowledges that the crisis in the agricultural machinery market has reached such a stage that "even if all these measures are implemented, it is unlikely that we will see a return to previous rates of fleet renewal for machinery and equipment this year."