Agricultural machinery sales bog down

Tractor sales have stalled in January, raising fears the slump that started in mid-2018 is getting worse.

The Tractor and Machinery Association reports tractor sales are "pretty grim", being down around 12 per cent on the same time last year.

In combination with declining machinery sales, the association warns the headwinds forecast this year will affect the "profitability and, indeed the viability of some dealers".

Sales of tractors are typically reported in four categories: under 40hp, 40-100hp, 100-200hp and 200hp and above.

The first three segments were down 10 per cent for the month and the 200hp and above range fell by 22 per cent.

Harvester sales remain a problem for dealers and are well down on 2018. The upside, according to the TMA, is this should lead to reasonable parts and service sales maintaining older machines. As a result there should be a backlog of sales opportunities when conditions do improve, but the TMA says "this is cold comfort for now".

It cites the federal election in April as historical cause for farmers to hesitate before buying, along with price increases as part of the increasing cost of inputs such as steel following the imposition of tariffs in the USA.