Tractor market records lowest sales in years

December 2024 marked another month of slow sales in the ag machinery market, with just over 1000 tractor units sold in the month, which was nine per cent below the same month last year, the Tractor and Machinery Association of Australia (TMA) reported.

This brings the total amount of new tractors sold for the year to around 11,000, representing a further drop of 23 per cent compared to the previous year.

Following a couple of years of unusually high sales during and post pandemic, due mainly to government incentives offered during that time, the tractor market has slowed right down in the last two years due to purchasing incentives drying up and rising interest rates.

However, in financial terms, the picture is not quite so grim as turnover was 15 per cent down due to a modest drop in the 200hp category.

“The size of the tractor market has fluctuated wildly over the past few years although, interestingly, the long-term average for the period 1989 to 2023 is just on 11,000 units. What is changing is the variety of product being sold with nearly 700 make and model combinations now being reported,” said TMA executive director, Gary Northover.

All states recorded a drop in new tractor sales in December 2024:

Meanwhile, sales across all reporting categories also suffered dips except for the under 40hp segment:

Sales of combine harvesters did not fare well last year either, with total units sold reaching less than 700 units, which was 35 per cent less than the previous year, ending a run of three consecutive years of 1000 units sold.

Baler sales were well down in the month and finished the year 11 per cent down. Sales of out-front mowers bucked the trend, finishing 22 per cent up for the year.