Tractor sales holding firm as new record beckons

Despite some potential spoilers, including a series of weather events across the eastern states and several public holidays, sales of tractors in September 2022 remained strong according to figures collated by the Tractor and Machinery Association of Australia (TMA).

Year-to-date (YTD), tractor sales are now up 2.1 per cent as the agricultural sector charges towards another record-breaking year, backed by the government’s temporary full expensing program.

"On this subject, we continue to lobby government to consider extending this program beyond the current end date of June 2023," said TMA executive director, Gary Northover.

"There is a concern that an abrupt end to this program could be damaging to the industry at a time of rising interest rates and a possible recession."

Large tractors (over 200hp) were in hot demand in September, 18 per cent ahead of September 2021, while machines in the 100 to 200hp bracket also rose, by one per cent. The smaller horsepower categories did not do as well, with the under-40hp category contracting by seven percent and 40 to 100hp by four percent year-on-year (YOY). However, with the exception of the 100 to 200hp group, all categories remain ahead YTD.

"So, in summary, whilst unit numbers were broadly in line with the same month last year, in dollar terms this September was up 13 per cent on last September due to the impact of the larger machine sales," Northover said.

Tractor sales maintain hot streak

Best year for tractor sales in 40 years

Temporary full expensing FAQs

Across the states and territories, results were reasonably strong across the board, with the majority still tracking in the black YTD. Northern Territory sales are fluctuating wildly, though: down 60 per cent in September after a massive 89 per cent rise in August 2022.

Meanwhile, on the strength of reportedly record harvests in many regions, combine harvester sales are up five per cent YTD, while baler (down by 28 per cent) and out-front mower (down by 20 per cent) sales have moved in the opposite direction.

"Predictions of when this current boom in sales might end are difficult to make at present," Northover said.

"Our recent Dealer Business Sentiment Survey conducted in August revealed expectations from dealers of a continuation of strong demand, however some observers have begun to sense a slight slowdown in the ordering process."