Russia's largest agricultural machinery manufacturer to cut production by 30% in 2025

Russia's largest agricultural machinery manufacturer Rostselmash will reduce production by 30% by 2025 compared to last year. This was announced by Konstantin Babkin, co-owner of the Russian company, to Vedomosti.

According to Babkin, the company will produce 2,700 combines and 800 tractors in a year, and plans to sell almost as many.

Due to the sharp decline in production, the plant operates only three days a week.

Babkin explained that the high key policy rate of the Central Bank and low incomes of farmers do not allow increasing output, and government support programs do not compensate for the fall in demand.

As a result, Rostselmash abandoned long-term investments, including the construction of a hydrostatic transmission plant and the modernization of a precision casting plant.

Another major Russian producer, Kirovsky Plant, is also planning to cut production by 20-25% due to falling farm incomes and high interest rates from the Central Bank of Russia.

According to the Rosspetsmash association, shipments of agricultural machinery in the domestic market in January-July 2025 were down 30% year-on-year. Sales of combines more than halved to 1,195 units, and tractors fell by more than a third (to 1,509 units).

Russian Minister of Agriculture Oksana Lut accused manufacturers of issuing an "ultimatum" to farmers, emphasizing that machinery is rising in price faster than the products grown.

For example, prices for tractors in Russia have increased by 70-80%, for combines by up to 40%, and for other equipment by 20 to 50%.

• In July, it was reported that the Russian State Duma was considering the possibility of return to state regulation of purchase prices for basic food products.