Tractor sales maintain hot streak

Tractors continue to stay high on farmers’ shopping lists as sales of the machine maintained its strong streak, with sales in May sitting 18 per cent higher than the same time last year.

According to the Tractor and Machinery Association of Australia (TMA)’s May machinery sales report, over 15,700 tractors have been sold in the country in the last 12 months, which is 37 per cent ahead of the previous 12-month period.

“The strength of the market continues to surprise many as the challenges being experienced with supply combined with the continuation of the extraordinary demand would suggest that these numbers remain beyond expectations,” said TMA executive director, Gary Northover.

“Many in the industry see the upcoming June/July period as likely to see a testing time as the Federal Government's Instant Asset Write Off Scheme comes to an end, even though it is to be continued for a further two years in the form of the Temporary full expensing program.”

A major reason for the supply challenges faced by dealerships, according to the TMA, is the bottlenecks experienced at Australian ports.

“We have been in discussion with the Federal Minister David Littleproud on this matter and have been advised that a range of pilot projects is to be established in conjunction with importers with the aim of reducing red tape and improving productivity whilst maintaining biosecurity standards,” Northover said.

“We will monitor these projects with interest as they unfold.”

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Across the country, all states reported strong activity with NSW once again leading the way, recording a 30 per cent increase in sales compared to this time last year (YOY) and now sits 78 per cent ahead for the year (YTD).

Victoria reported an increase of six per cent YOY and is now up 32 per cent YTD; while Queensland was up 19 per cent YOY and sits 35 per cent ahead YTD.

Western Australia sales picked up another 13 per cent YOY to be 48 per cent ahead YTD; while sales in South Australia had a 34 per cent increase YOY. Finally, Tasmania finished the month five per cent behind.

All performance reporting categories enjoyed increases again in May.

The under 40hp range went up by 22 per cent for the month and is now 47 per cent ahead YTD.  The 40 to 100hp range rose 28 per cent YOY to sit 50 per cent ahead YTD; while the 100 to 200hp category was up five per cent YOY to be 29 per cent ahead YTD. Last but not least, the large 200hp and above range experienced another strong increase -up 21 per cent YOY and is now 60 per cent ahead for the year.

“Sales of combine harvesters are yet to get going, however dealers continue to report a healthy level of enquiry,” Northover said.

Baler sales dipped again for the month but are still up 33 per cent on an annualised basis, while sales of out-front mowers remained steady to sit 33 per cent ahead of the same time last year.

TMA conference scheduled for July