Large tractors buck trend as February sales dip overall

Australia’s tractor market softened in February, but strong demand for high-horsepower machines continues to provide a bright spot in an otherwise challenging landscape.

According to the Tractor and Machinery Association of Australia's (TMA) February figures, sales of tractors above 200hp rose 22.5 per cent compared to the same month last year, reinforcing a shift toward larger, more capable machinery. However, this growth was offset by declines in smaller categories, with total tractor sales down 6.6 per cent year-on-year.

Just under 700 units were sold during the month, highlighting ongoing market pressure. Despite the drop in unit sales, total retail turnover increased by 18 per cent, reflecting the higher value of larger machines currently dominating buyer demand.

In a statement, TMA said the softening market is not confined to Australia. "Tractor sales across the globe are struggling as increased manufacturing costs continue to weigh on demand," the organisation said.

"Here in Australia, this has been further exacerbated by the challenging climate with some areas, particularly in the south of the country, in severe drought whilst some in the north are experiencing high seasonal rains."

Forecasts from major US manufacturers such as John Deere and Case New Holland suggest the market is nearing the bottom of its cycle, with conditions expected to remain challenging through 2026, TMA added.

Across the states, results were mixed. South Australia and the Northern Territory posted gains of 10.7 per cent and 14.3 per cent YOY respectively, while Tasmania remained steady. In contrast, Victoria (-14.2 per cent), New South Wales (-6.6 per cent) and Western Australia (-9.9 per cent) all recorded declines.

By horsepower segment, the trend was clear. Tractors under 40hp fell sharply by 27.5 per cent YOY, while the 100–200hp category dropped 16 per cent. The 40–100hp segment was the only other category to show growth, up 8.2 per cent for the month.

Elsewhere, combine harvester activity was minimal in February, while baler sales dropped 18 per cent for the month, although they remain 24 per cent ahead year-to-date.

Out-front mower sales rose seven per cent, while self-propelled sprayers declined by four per cent compared to the same time last year.