New survey reveals Aussie farmers’ machinery purchasing intentions

A recent pulse survey conducted by market research company, Kynetec, has found an overwhelming sense of optimism among farmers when it comes to their economic outlook, pointing to a potential resurgence in machinery purchases in the not-too-distant future.

Following three years of booming sales, the agricultural machinery market has since softened significantly.

The survey, which polled 184 farmers across 536,498 hectares of farmland, provides key insights into farmers' purchasing intentions and economic outlook.

According to the survey, 61 per cent of farmers said they bought their last tractor new, with 13 per cent of these purchases occurring in the previous six months and 14 per cent in the past six to 12 months. A sizeable 30 per cent bought their last tractor more than five years ago.

Looking to the future, what are farmers’ buying intentions?

The survey results show that 11 per cent of farmers whose last tractor was new are planning to make their next purchase within the next 12 months, while an additional 18 per cent are looking to invest in new machinery in the next one to two years.

However, economic optimism among farmers is the key factor that is expected to contribute to an uptick in machinery purchases.

Nearly half (49 per cent) of respondents said their current economic situation is "good" to "very good," and 46 per cent believe their financial situation will improve over the next two to three years. This growing confidence in the future is expected to drive an increase in machinery purchases as farmers look to upgrade their equipment and boost productivity.

Already, dealers are reporting strong enquiry from the market, however that has yet to translate into tangible sales, according to the Tractor and Machinery Association of Australia (TMA). It remains to be seen when and how the renewed confidence will translate into action.