New tractor sales bouncing back

Following several months of gloom, new tractor sales picked back up somewhat in September, rising 3.3 per cent against last September’s figures.

Across the horsepower segments, three out of four experienced improvement in sales, with the above-200hp group taking the cake. It recorded a 20 per cent lift in September and now sits 2.2 per cent behind year-to-date.

The 100 to 200hp segment was up four per cent for the month but remained 12 per cent behind last year. The 40 to 100hp range was the only category not to report a lift in sales for the month, down three per cent now sitting 13 per cent behind last year. The under-40hp range enjoyed a 2.3 per cent rise in September, now 10 per cent down on a yearly basis.

“While confidence remains generally down, and order banks are slim, there has been a reasonable amount of deal making in the market with dealers keen to quit stock at less margin than we’re used to seeing,” said Tractor and Machinery Association of Australia (TMA) executive director, Gary Northover.

Across the nation, NSW reported its first lift in sales for some time, up 6.2 per cent compared to the same month last year. Queensland reported another dip, down five per cent in the month and now seven per cent behind for the year.

Victoria had a very solid month driven by buoyant conditions overall - up 23 per cent on the same month last year but remains five per cent behind for the full year.

“Victoria has accounted for just over 30 per cent of industry sales in this quarter and is playing a pivotal role in supporting the market,” Northover said.

Sales in South Australia continue to struggle, down another 39 per cent to sit 26 per cent behind last year. “Anecdotally we believe the market there has been consuming a lot more used equipment than usual,” Northover said.

Lastly, Tasmanian sales continued to roll along, now seven per cent ahead YTD while sales in the NT dropped for the month, now seven per cent behind last year.

In other machinery categories, combine harvester sales showed no signs of recovery and continued to fall behind, recording a drop of 23 per cent compared to September 2018 to sit 16 per cent behind on a 12-month basis.

Baler sales continue to sit pretty with September sales up 43 per cent on last year and now 34 per cent ahead on a year-to-date basis.

“Suppliers are reporting that demand for hay is so strong that the use of contractors to cut hay is ‘maxed out’, forcing many growers to take matters into their own hands and purchase equipment to do the job,” Northover said.

Sales of out-front mowers bounced by 20 per cent in the month in preparation for the grass growing season, now sitting slightly behind on a yearly basis.

“With the Field Day season upon us, we have been able to gauge sentiment in the market a little more closely and the message continues to be one of concern in the medium term with hopes for summer rains appearing unlikely,” Northover said.