Tractor market on track for another record year: TMA

If the Tractor and Machinery Association of Australia's (TMA) latest machinery sales report is anything to go by, it seems the market is set for another record-breaking year.

According to its April sales report, overall tractor sales surged 15 per cent from March, and is ahead by eight per cent from figures set the same time last year.

The 100-200hp range was behind this lift, up 31 per cent on the previous month and now 29 per cent ahead on the year to date.

“There appears to be a variety of explanations for this up lift ranging from a synchronisation in the refinancing cycle occurring to the positive impact of rain in some regions,” said TMA executive director, Gary Northover.

“Despite all of this, the industry remains cautiously optimistic as the general appetite for new deals appears to be steadying somewhat.”

The under 40hp segment is up four per cent and now sits in line with last year. The 40 to 100hp segment is steady in the month and continues to perform strongly, up six per cent from last year’s numbers.

The larger above-200hp range dropped by 12 per cent in April and now trails last year by four per cent.

Region-wise, Queensland and WA experienced very strong months in April - up 19 per cent and 24 per cent respectively.

“Out in the West, conditions have been quite steady for some months as early season rains have reinforced confidence,” Northover said.

“Up North, we have seen quite solid rainfalls which has also instilled confidence. Many of the orders delivered last month were placed some months ago so we don’t necessarily attribute one month’s success to recent rains, we do however see the impact rain has on confidence and thus, farmers proceeding with deliveries.”

The other major states of NSW and Victoria were both down slightly but remain up on last year.

“Once again, the absence of rain has dampened expectations a little, however, the heavens have since opened which we hope will redress this.”

South Australia reported a huge bounce, up 56 per cent on March and 12 per cent up on the same period last year. Business was also strong in Tasmania, up 32 per cent from March and up 14 per cent year to date.

“We attribute both of these results to a bump in deliveries for the month which is expected to smooth out over the coming months,” Northover said.

Harvester sales were going steady, having sold 55 units against 37 units last year.

“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 were also strong, with 69 units sold compared to 49 last year as the market slowly recovers from what was an ‘off’ year last year.

The sale of out-front mowers were also strong, up two per cent on the same time last year.

“Looking ahead, there is cautious optimism in the market that we will have another solid year for agricultural equipment sales,” Northover said.

“Challenges include the uncertain weather outlook, generally subdued commodity prices and threats of interest rate rises.

“Supply of equipment will also be tight as demand in the US and Europe for agricultural product continues to grow.”