Tractor sales back to ‘normal’

Agricultural tractor sales have fallen by another 31 per cent in April year-on-year (YOY), indicating that higher interest rates, lower stock availability and machinery price rises are starting to bite, according to the Tractor and Machinery Association of Australia (TMA).

However, the results are by no means sub-par, instead a return to ‘normal’ levels of around 13,000 units sold per year as opposed to 18,000 for the past two years, the organisation said.

Around 4500 new tractors have been sold so far this year. In dollar terms, the number is down only 3.2 per cent on the same time last year, a reflection of the mix of sales occurring in the market.

“The outlook for the remainder of the year is likely to see a continuation of this tapering and, whilst we may see a bump towards June as the Temporary Full Expensing program comes to an end, a full year’s sales figure of around the 12,000 to 13,000 unit mark is expected,” said TMA executive director, Gary Northover.

All states experienced a dip in sales figures in April, with Victoria down a whopping 49 per cent YOY to be 33 per cent behind year-to-date (YTD). Queensland was down 23 per cent YOY and 15 per cent behind YTD; while New South Wales was down 26 per cent YOY to be 25 per cent off YTD.

Sales in Western Australia went through a 27 per cent drop despite strong sales of high-horsepowered tractors, and sits 15 per cent behind last year. South Australia recorded a 15 per cent drop and now sits 11 per cent behind YTD.

Related: Tractor sales slide as combine sales hold strong

Tasmania was off 22 per cent for the month and 17 per cent off YTD while sales in the Northern Territory was down by 10 per cent but remains 23 per cent up YTD.

In terms of the machine categories, the 200hp and over range had a good month in April as it recorded a 14 per cent increase YOY but remains 17 per cent behind last year. The small under-40hp category, one most likely to be affected by interest rates, was down by 51 per cent for the month and is now 17 per cent behind YTD. The 40 to 100hp range was also down by 29 per cent YOY and now sits 22 per cent behind YTD. Finally, the 100 to 200hp category recorded a drop of 37 per cent in sales in April and is now 28 per cent behind YTD.

While combine harvester sales have come to an end this time of the year, dealers are reporting a healthy forward order intake which augers well for another strong season, the TMA said.

The baler sector did a U-turn in April after recording consecutive months of ordinary sales, with figures up 40 per cent YOY and up five per cent YTD.

Lastly, sales of out-front mowers continued its average run, with figures down by six per cent YOY.