EOFY rush push tractor sales up

Tractor sales for the 2021-22 financial year ended on a strong note, with June sales up 18 per cent on the same month last year and are now in line with the 2022 year to date, according to the Tractor and Machinery Association of Australia's (TMA) monthly sales report.

According to the TMA, the strong result is largely due to the end of year rush as buyers sought to maximise use of the Federal Government's Temporary Full Expensing Program.

“As we have been reporting for some months now, the industry's ability to deliver tractors in such large quantities is due to the regular forward ordering that has been occurring for two years now in anticipation of supply challenges,” said TMA executive director, Gary Northover.

“The fact remains that if a farmer wants  a specific bespoke tractor ordered from the factory then delivery will be at least 12 months, indeed most dealers now are resisting taking forward orders because of the uncertainty surrounding supply combined with the price movements that are beginning to occur across the board.”

Sales across the nation have picked up from previously sluggish conditions. NSW sales were up 23 per cent YOY to sit two per cent behind YTD while Queensland was up 19 per cent to be seven per cent ahead YTD. Victoria recorded a 10 per cent increase on last June, due mainly to supply of small horsepowered units, and is now up two per cent YTD.

Sales in Western Australia recorded another huge lift with the further arrival of large horsepowered machines, up 55 per cent for the month but still six per cent off YTD. South Australia numbers were stable for the month while Tasmania sales were down by five per cent YOY. Finally, sales into the Northern Territory were up 56 per cent YOY.

In terms of performance categories, the large 200hp-and-over segment continued to lead the way, with sales up 54 per cent from the same month last year but still 12 per cent off YTD.  

The small under-40 hp category also recorded strong numbers, with sales up 37 per cent YOY to sit eight per cent ahead  YTD. The 40 to 100hp range was up three per cent in the month to remain four per cent ahead YTD while the 100 to 200hp category was up six per cent YOY to be four per cent behind YTD.

Tractors aside, other agricultural machinery categories also enjoyed a decent month of sales in June, with combine harvester sales already starting to occur. “There is every expectation of another 1,000+ year for this product as the renewal of fleets depleted by the drought continues,” Northover said.

After an ordinary month in May, baler sales experienced a turnaround in June albeit still down three per cent compared with last year. Finally, sales of out-front mowers were down 39 per cent YOY.