Another strong month for tractor market

It has been another good month for tractor sales in the country, with August numbers up 19 per cent year-on-year and 21 per cent ahead year-to-date.

The Tractor and Machinery Association of Australia (TMA) attributed the positive conditions to ongoing demand for agricultural produce, favourable weather conditions across the nation, as well as the all-important Federal Government's Instant Asset Write-Off program, which is currently slated to end on December 31.

All states recorded strong growth in sales last month, especially NSW which recorded a whopping 52 per cent increase from the same time last year and now sitting 28 per cent ahead for the year.

Victoria was up 15 per cent, now 29 per cent ahead year-to-date while Queensland was up five per cent YoY and 13 per cent YTD.

Western Australia sales were in line with the same month last year but sat two per cent behind YTD, due mainly to the reduced demand for large tractors in the broadacre sector, TMA reported.

Sales in South Australia were up a healthy 31 per cent YTD, while sales in Tasmania were up 21 per cent YTD.

Sales numbers across each horsepower segment reflected the take up of the Government incentive, which supports machines in the smaller horsepower segments valued at $150,000 and below.

Sales in the under-40hp range were up 58 per cent compared to the same time last year and now sit 24 per cent ahead YTD.

The 40 to 100hp range also recorded strong growth, up 27 per cent YoY and now sits 22 per cent ahead for the year.

The 100 to 200hp category saw its first dip in some time, down six per cent compared to August 2019’s figures but still up 31 per cent YTD.

Sales in the large 200hp and above range dipped two per cent YOY, leaving this category seven per cent behind YTD.  “Demand for large tractors is being impacted by a range of factors including the persistent drought in regions within Northern NSW and Southern Queensland and the ongoing challenges being felt in the West,” said TMA executive director, Gary Northover.

“Further pressure is being felt as a result of recent price increases.”

In line with the surge in demand for new tractors, especially in the smaller horsepower categories, dealers are faced with supply issues for machines coming from overseas, Northover added.

“Some product normally expected to be ex stock are now subject to six to eight week delivery times,” Northover said.

“Product coming out of Europe and the US continues to be hampered by factory based restrictions with reasonable demand in home markets compounding these delays. Locally, dealerships continue to operate under COVID safe work plans which impacts supply.”

In other product segments, combine harvester sales remain steady with most product now in place for the upcoming harvest season, the TMA said. The full year picture is likely to be around 15 to 20 per cent down on last year.

Baler sales were again strong, remaining up 27 per cent year to date whilst sales of out-front mowers were down a touch but still 14 per cent ahead of the same time last year.