The Association of Argentine Factories of Tractors and Other Agricultural and Industrial Equipment (AFAT) presented its 2025 balance sheet with a diagnosis that combines positive signals and structural alarms. In the document, the company acknowledged that the market had improved compared to the previous year, but made it clear that this was an improvement “partial recovery”which is still not enough to drive a profound renewal of the machinery in Argentina.
Regarding the market development in 2025, the organization noted that there has been a gradual recomposition of demand, which is reflected in the patents. In the first eleven months of the year, 4,882 tractors were registered, 2% more than in the same period in 2024; 688 harvesters, an increase of 21%, and 618 sprayers, 3% more than last year.
However, AFAT warned that “these volumes are still below the volumes needed to promote a deep and sustainable renewal of agricultural equipment at the national level.”
For the company, this dynamic explains why improvement is not enough to reverse an underlying problem. “Despite this potential, 70-80% of tractors in use are over 15 years old and a similar percentage of combine harvesters are over 10 years old.” pointed to the balance sheet. AFAT emphasized that this age “limits efficiency and makes operations more expensive.”
Among other things, he identified the causes that explain this scenario “the ongoing difficulties in accessing adequate, stable and available financing throughout the year,” a condition that, as he warned, ““It slows down the modernization of the machinery and creates unused opportunities.” In addition, there are other structural factors such as “the high tax burden, the lack of accessible financing, macroeconomic volatility that hinders planning, competition on unequal conditions with imported machinery and the aging of the machinery fleet, which affects efficiency, safety and competitiveness.”
The contrast becomes apparent when one considers the productive potential of Argentine agriculture. According to the Buenos Aires Grain Exchange, the gross harvest would reach 142.6 million tons in 2025/26, which would mean “An increase of 8.9% compared to the previous campaign.” Additionally, the company stated that “with stronger and better adoption of the technology, the country could reach 155 million tons sustainably.”
In this scenario, AFAT focused on the strategic role of agricultural machinery and the concrete impact of innovation. He highlighted this in his balance sheet “Integrating the latest technologies from our partners can significantly improve production efficiency.” He pointed this out at the grain harvest “By combining sensors and autonomous control systems, losses can be reduced by 15 to 20%.”
In selective applications of herbicides with artificial intelligence, he added, “it is possible to achieve savings of 70% to 80% in inputs,” while in full coverage applications, “the use of solenoid valves in each peak makes it possible to reduce overlap and save between 5% and 10% in phytotherapeutics.”
For AFAT, these are advances “Show the enormous impact that innovation can have on costs, environmental sustainability and competitiveness“, but warned that this potential cannot be fully realized unless the market is accompanied by increased investment.
In industrial terms, AFAT brings together eight companies that operate twelve production sites in Buenos Aires, Santa Fe and Córdoba. These companies generate “More than 15,300 direct and indirect jobs” and have an annual installed capacity of “4,000 combine harvesters, 11,600 tractors, 850 sprayers and 86,000 engines.” It is a structure capable of accompanying greater growth in the agricultural sector for the company.
AFAT noted: ““The contribution of machines to the productivity of the Argentine countryside has been crucial and will continue to be so, provided the country manages to fully exploit its technological potential.”
Looking ahead, the balance sheet left an open agenda. AFAT reiterated “its commitment to the industrial development, technological innovation, agricultural competitiveness and national development of Argentina.” In this sense, he claims that “2025 leaves behind signs of recovery and a clear agenda of challenges” and that with this outlook he hopes for 2026 “a scenario with greater stability, more investment opportunities and a path towards a machinery industry more integrated with the growth of the agricultural sector”.
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