Tractor sales hit $1B

Tractor sales for the 2017-18 financial year recorded just shy of 13,000 units, with the value hitting over $1 billion for the 10th consecutive year, the Tractor and Machinery Association of Australia (TMA) has reported.

According to its latest sales figures, overall tractor sales for the year now sit four per cent ahead on a year to-date basis despite a noticeable drop off in June as dealers slowed up deliveries.

The organisation has also reported an increase in the size of tractors purchased based on horsepower. In 2013, the average tractor size was 32hp and it is now 36hp.

“The good news for buyers though, is that whilst size has been increasing, prices have in fact been declining due to improved manufacturing techniques and the very low interest rate environment,” said TMA executive director, Gary Northover.

Results around the country is a mixed bag due in no large part to the drought conditions being felt along the eastern states.

Sales in Victoria were two per cent down on last year with June numbers 11 per cent behind May’s figures. Conditions in NSW and QLD are similar, both producing results that are in line with last year but down around 20 per cent on the previous month.

Sales in WA is now nine per cent ahead on last year, thanks to adequate rainfall across the state. SA also recorded strong sales in June, now up 12 per cent for the year, while Tasmania also recorded stellar results, with sales now up 20 per cent on last year.

All four size categories recorded slow sales in June, with the under-40hp segment finishing four per cent behind for the year.

Sales in the mid categories (40 to 100hp and 100 to 200hp) were healthy, being two per cent and 11 per cent up on last year’s figures respectively; while the over 200hp group was down around nine per cent this year after a very strong 2016-17.

“Whilst we continue to associate tractor sales with agricultural use, the influence of hobby farmers has been significant in delivering an almost new category of customers to the market,” Northover said.

“This segment has a very healthy appetite for new tractors and is operating with a level of sophistication which is demanding attention and now accounts for around one third of the total industry by number.”

Combine harvester sales are still in the dormant phase with planned deliveries not likely to occur for another few months, TMA added. On a year-to-date basis, sales are presently tracking last year's levels with 108 units sold since January.

“That said, expectations are for a much lower year as the impact of the drought takes hold,” Northover said.

Baler sales are sitting in line with last year also at around the 100-unit mark since January, while sales of out front mowers have slowed down, now 10 per cent behind last year’s figures.

“All in all, we are beginning to see real signs of, if not a slowdown, then certainly a pause in activity particularly as a result of the dry conditions,” Northover said.

“The coming months will certainly tell a tale in this regard.”