News

Bosses at agricultural machinery firm Agricar have reported healthy finances against a backdrop of continued uncertainty in the farming industry.

Directors Derek Johnston and Wendy Smith said the Forfar-based company remains in good shape following a profitable year.

But market conditions are challenging, with looming inheritance tax changes, a poor harvest and other economic pressures forcing many farmers to think carefully about investing in new tractors or other major items of kit, the pair said.

Founded in 1986, family-owned Agricar supplies tractors and a wide range of agricultural machinery, together with related parts and servicing.

The sales inventory includes New Holland tractors, Oxbo and Standen potato equipment, and an assortment of implements from leading brands including Dalbo and Kuhn.

There a re six depots spanning Angus, Fife, Kincardineshire, Perthshire and Stirlingshire, supplying customers throughout Scotland.

Mr Johnston said market uncertainties this year were reflected in “not much new product coming through”, but it is hoped a few recent additions to the range will help boost sales.

Head count across Agricar and sister company Ness Plant has remained flat at 125 staff in 2025.

Ness Plant has depots in Brechin, Bridge of Allan and Kinross.

The business specialises in the Manitou product range as well as GKD safety systems.

Agricar sold Forfar-based Ness Electrical in 2025.  Ness Electrical is now part of the Dundee-based electrical, plumbing and heating contractor PME Group.

Ms Smith said Agricar continues to put strong emphasis on recruiting young talent.

This comes at “significant cost” but people are the long-term future of the firm, she said.

Reflecting on an ever-evolving agricultural industry, Mr Johnston said: “The big guys are getting bigger, so our customer base is decreasing.

“Parts of the market are struggling to keep up with these changes.”

Ms Smith, Agricar’s financial director, said: “There’s so much uncertainty around at the moment.  Budget and legislative changes are having an impact.”

A lot of farmers seem to be “hanging tight until things are a little better”, she added.

Ms Smith and Mr Johnston were speaking after accounts lodged at Companies House showed Agricar grew pre-tax profits to £492,344 in 2024, from £343,445 in 2023.

Turnover surged by nearly 14% during 2024, to £42.6 million.

Ms Smith said: “2024 saw an ever-changing agricultural sector, making it an extremely challenging marketplace to be trading within.

“Despite the ongoing adaptions needed to meet marketplace challenges, our highly skilled staff continued to strive to deliver a quality product and service.

“The variable operating environment and customer reactions to changing market conditions have led to a favourable return for the business.”

Agricar employed 111 on average during the year, across sites in Forfar, Blairgowrie, Laurencekirk, Perth, Stirling and Cupar.

Mr Johnston added that 2025 had been “a tough year, harder than 2024”.

New tractor registrations in the Scottish agricultural sector have suffered amid the uncertainty, he said, adding: “All the dealers and manufacturers are feeling it.”

This article appeared in The Courier on 31 December 2025