Ag tractor sales “in state of correction”

Sales of agricultural tractors in the month of August saw a drop of 21 per cent year-on-year (YOY) to sit 28 per cent on a year-to-date (YTD) basis, the latest figures from the Tractor and Machinery Association of Australia (TMA) revealed.

Tractor sales in dollar terms are now 16 per cent behind YTD.

“We now have two full months of data not impacted by the Federal Government’s Temporary Full Expensing Program which ended in June 2023, and the picture is now quite clear that the market is in a state of correction following the recent boom period,” said TMA executive director, Gary Northover.

The TMA also suggested while dealers are reporting a healthy level of enquiry from the market, there is a lack of urgency from buyers.

“This should be no surprise given the high levels of inventory in yards and an absence of any further incentives to buy now,” Northover said.

“Astute purchasers will be aware that deals are there to be done if they aren’t in a hurry and suppliers are responding with improved pricing and discounted interest rate terms. On this basis our expectations for full year sales are now around the 10,000 units mark.”

Sales numbers were down across all states – Queensland recording a 27 per cent drop YOY to be 24 per cent behind YTD.

Victoria was down in August by 10 per cent to be 23 per cent below last year while NSW was down 21 per cent YOY to sit 35 per cent behind YTD.

Western Australia reported a big drop of 31 per cent YOY to be down 16 per cent compared with the same time last year and South Australia was off YOY by eight per cent and down 30 per cent YTD.

Lastly, Tasmania was off by 30 per cent for the month while sales in the NT finished 29 per cent down.

Sales in each of the reporting categories were also well off this month except for the 100 to 200hp category which enjoyed a rise of 12 per cent for the month but remains 25 per cent down YTD.

The small under 40hp category was down by 37 per cent to be 24 per cent behind YTD. The 40 to 100hp range was also down, this time by 29 per cent and is now behind 38 per cent YTD.

Finally, the 200hp plus range was 24 per cent down compared to the same month last year and is now 12 per cent behind YTD.

In other machine categories, combine harvester sales have begun in preparation for the upcoming harvest, however, only around half the number of units have been sold thus far in 2024 compared to last year.

“Whilst another solid harvest season is expected there is no doubt that many growers will be well stocked with machines given the tax benefits of buying during the last few years,” Northover said.

Baler sales continue to improve, this time up 11 per cent for the month but remain 13 per cent behind YTD. Finally, sales of out-front mowers were down by around 15 per cent in the month.