Tractor sales plunge to five-year low

Australia’s agricultural machinery market has taken a sharp downturn, with tractor sales in May falling 23 per cent year-on-year (YOY) — marking one of the lowest monthly results in five years.

Just 800 tractors were sold nationwide during the month, with year-to-date (YTD) figures now sitting 12 per cent below 2024 levels. The downturn is being felt across every state and every horsepower category, according to the latest figures from the Tractor and Machinery Association of Australia (TMA).

"The combination of drought in the southern states of Victoria and South Australia and flooding in New South Wales has had a significant impact on demand and whilst there have been positive signs in the market for some time, these have now been dashed," said TMA executive director, Gary Northover.

Queensland led the declines with a 35.4 per cent drop YOY to be 12 per cent behind YTD, while New South Wales recorded a 22 per cent dip YOY to sit 11 per cent behind YTD. South Australia and Victoria saw sales tumble by 35 per cent and 23 per cent YOY respectively. Even Western Australia, which has remained relatively steady in recent months, recorded a 10 per cent dip YOY. Finally, Tasmania sales are up two per cent and sales in the Northern Territory are down nine per cent YTD.

No size category was spared. Sales of compact under-40hp tractors dropped 32 per cent for the month (three per cent behind YTD), while the 40hp-100hp segment was down 12 per cent YOY (seven per cent behind YTD). The 100–200hp category was down 28 per cent YOY (14 per cent down YTD) and finally, large 200hp-plus tractors saw a 19 per cent decline YOY and are now tracking 25 per cent behind YTD.

Other product categories also struggled. Baler sales fell by a massive 62 per cent in May and are now 39 per cent down for the year. Sales of out-front mowers also slipped eight per cent for the month and remain 31 per cent behind.

One of the few bright spots came from combine harvesters, which posted a 15 per cent increase YOY, putting them 17 per cent ahead year-to-date. However, total annual sales is expected to be around 700 compared to previous years' of more than 1000 units.

"The outlook remains a very challenging one as reflected in the recent TMA dealer business sentiment survey," Northover said.

"Dealers are expecting a continuation of challenging conditions for some time to come, and there remains plenty of inventory in dealers' yards and numerous incentives in play aimed at attracting buyers."

The association’s annual conference will be held on July 24 at the Hyatt Essendon Fields in Melbourne, where the industry will come together to discuss these challenges and explore future opportunities. Tickets are on sale now via the TMA website.