Solid tractor sales in May

It was another solid month for tractor sales, according to the Tractor and Machinery Association of Australia (TMA), as the market continues its march towards another record year.

Overall tractor sales now sit eight per cent ahead on a year-to-date basis and sales have exceeded the 12,000 mark for the third year in a row.

The strength of the market continues to be in the mid ranges, with the 100 to 200hp range up 7.5 per cent on last month and now 23 per cent ahead on last year.

The 40 to 100hp segment climbed back up from April figures, up six per cent in the month as well as on 2017 figures.

On the other end of the spectrum, sales of larger tractors in the above 200hp range have slipped behind last year’s mark, down a sizeable 26 per cent in May and now eight per cent behind year-to-date.

The under 40hp segment also fell slightly behind, down four per cent on April and now two per cent behind last year.

“Attempts to interpret the drivers of these results can be a bit difficult as larger tractors in particular, tend to be ordered against longer lead times, so decisions made late last year are significant in terms of current deliveries,” said TMA executive director, Gary Northover.

“What we do know is that sales of hay tools are down, the dairy industry is steady, the cost of money is rising and weather patterns across the nation have varied significantly,” he said.

“Furthermore, many in the industry are asking the question of just how many new tractors can the market absorb in one year.

“We know that the number of individual farms has dropped over recent years as has land usage, so at some point, we ought to see a level of saturation, albeit short term in nature. No doubt the position will become clearer in the months ahead.”

Around the nation, business remains brisk in WA, up 19 per cent on last month and now 10 per cent ahead of last year.

Sales in Victoria were off five per cent and slightly ahead of last year. NSW and SA picked up another 16 per cent for the month.

The only significant drop was noticed in Queensland which, after a number of positive months, was down 15 per cent for the month but remains seven per cent up on last year.

“Harvester sales are yet to get going, however dealers are generally predicting a slower year this year as the impact of a lower 2017 crop combined with some new models slowly hitting the market are likely to impact,” Northover said.

Baler sales dipped in May, however 81 units have been sold this year compared to 72 last year as the market slowly recovers from what was an ‘off’ year last year.

The sale of out front mowers were down for the first time in recent months and are now in line with the same time last year.