A machine for producing seedlings or grafts of woody plants (1), comprising motorised cutting means for cutting stems and joining two previously cut stems to obtain a graft; means for supplying the paraffin that coats the graft join area; motorised displacement means that transport the graft from an area equipped with the cutting means to an expelling area, said displacement means having a plurality of gripping elements for securing the stems and grafts, each of said gripping elements being susceptible of rotating with respect to the means of transport in the area where the paraffin supply means are located; and means for expelling the graft for extracting the graft from the gripping element outwards.