Tractor sales in 2022 top $2.3 billion

Despite a challenging year of bad weather conditions and ongoing supply shortages, 2022 proved to be another phenomenal year for the agricultural machinery market, according to the Tractor and Machinery Association of Australia (TMA), with tractors and combine harvesters once again setting record sales.

Tractor sales on track to break record

Best year for tractor sales in 40 years

For the month of December, sales of tractors were up nine per cent year-on-year (YOY) to bring the year-to-date (YTD) position three per cent ahead.

This represents around 19,000 tractors sold, amounting to approximately $2.3 billion in value, exceeding the record set in 2021.

“This is the second consecutive year we have seen such strong activity, a period not seen in this country since the 1980s,” said TMA executive director, Gary Northover.

In addition to tractors, combine harvesters also enjoyed a stellar year of sales, with 1145 units sold in the past 12 months. That represented a rise of six per cent on 2021.

“The drivers of this activity have been well documented with the strength of the market for agricultural commodities, as evidenced by this year’s record grain harvest combined with the Governments Temporary Full Expensing program accounting for much,” Northover added.

“However, this has all been underpinned by the strength of the used equipment market. Farmers have been taking advantage of the used value of their machines and upgrading to newer, productive, lower-emissions tractors.”

Looking at the figures in detail, all states except for South Australia recorded rises for the month. Queensland continued its strong run with an 11 per cent rise YOY to be 14 ahead for the year; NSW was in line with last year to finish the year down one per cent; while Victoria had a strong month – up 18 per cent to finish the year two per cent up YTD.

Sales in Western Australia were also strong, recording a whopping 31 per cent rise YOY to end the year 4.4 per cent ahead. South Australia recorded a six per cent decline to be three per cent behind for the year.

Tasmania enjoyed a rise of 1.5 per cent for the month but finished the year 10 per cent behind last year. Lastly, sales in the NT ended 11 per cent ahead YTD.

In terms of machine category, sales in the small under-40hp segment once again led the pack, recording an increase of 30 per cent YOY to end the year 12 per cent ahead. The 40 to 100hp range was up two per cent in the month to finish two per cent ahead YTD, while the 100 to 200hp category was also up, this time by six per cent in December to be two per cent behind over the full year.

Sales in the large 200hp and above range took a back seat last month, down eight per cent but still sitting three per cent ahead of 2021.  

Challenges in the hay market continue with production down across the nation, leading to baler sales falling 33 per cent in December and down on last year by the same margin.

Finally, out-front mowers had a sub-par year, with sales down 21 per cent YTD.

Following several consecutive stellar years of sales, Northover anticipates 2023 to be another positive year for the agricultural machine market despite the Temporary Full Expensing Program ending in June.

“The biggest issue for the industry remains getting machines. Some brands now have lead times out to 2024 for larger product in particular and remain reluctant to quote prices due to the ongoing volatility in the supply chain,” Northover said.

“An example of this can be seen in the recent movements in the shipping market. The price for containerised freight has dropped considerably off the back of the effective shutdown of China, however the price for RORO has leapt more than four-fold due to a mix of increased volumes, increased turnaround times at port and competition for ships due to the massive supply of military equipment to Europe.

“Challenging times continue.”