Tractor market still booming

March was another outstanding month for the local tractor market with sales of new tractors up a healthy 64 per cent year-on-year (YOY), the Tractor and Machinery Association of Australia (TMA) has reported.

There has now been over 15,000 tractors sold in the past 12 months, which is 40 per cent ahead of the previous 12-month period.

In March, all horsepower categories enjoyed huge bumps in sales, including the higher horsepower segment which struggled in the past year. The under 40hp range was up 61 per cent up for the month to be 68 per cent ahead year-to-date (YTD).  The 40 to 100hp range was up 70 per cent YOY and 68 per cent up YTD, while the 100 to 200hp category was up 58 per cent YOY and 53 per cent YTD.

The large 200hp and above range enjoyed another strong rise, up 72 per cent YOY and is now 92 per cent ahead for the year.

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“As we have been reporting for some months now, the combination of the Federal Government’s Instant Asset Write Off Scheme along with the outstanding weather conditions has been driving demand,” said TMA Executive director, Gary Northover.

“Offsetting these positives is the matter of supply. The effects of COVID-19 restrictions in source countries along with the lift in demand for machinery worldwide has put strain on local deliveries.

“The big question being asked is: ‘How long can the good times last?’”

Northover added that while recent rains have caused havoc in some regions, the overall effect of all that rainfall is expected to be positive.

“With the Instant Asset Write Off Scheme due to expire on June 30 2021, we expect a continuation of the strong demand for machines to remain at least until then,” Northover said.

“Beyond this we are anticipating a tapering off, the depth and duration of which is still largely unknown. Suffice to say the industry remains very healthy.”

Activity across all states are strong with NSW again the standout, recording a 98 per cent increase in sales compared to the same time last year and now 105 per cent up YTD. Victoria reported another solid month, up 47 per cent YOY to now sit 45 per cent ahead for the year, while Queensland was again up 64 per cent YOY to be 63 per cent ahead YTD.

Western Australia sales picked up 70 per cent to be 72 per cent ahead for the year, while sales in South Australia increased by 14 per cent for the month. Finally, Tasmania finished the month 65 per cent ahead YTD.

The order intake season for combine harvesters is now well underway and dealers are reporting increased demand, the TMA said. The past 12-month period has seen sales go past the 650 unit mark which is up from 530 in the previous 12 months.

Baler sales dipped for the first time in some time but are still up 39 per cent on an annualised basis. Sales of out–front mowers also slowed but remain 35 per cent ahead of the same time last year.