South African agricultural input costs are increasing while net on-farm returns are decreasing, which is negatively affecting the profitability of agriculture in South Africa. The real net farm income and real gross income decreased by 14.4% and 5.8%, respectively from Q2 2021 to Q2 2022. Simultaneously, the real expenditure on intermediate goods and services increased by 3.7% YoY. This is a worrisome trend for South Africa producers should it continue into the future.