Tractor sales slide as combine sales hold strong

Sales of new tractors in March is down 10 per cent year on year (YOY), bringing the year-to-date (YTD) figure to 19 per cent behind last year, according to the Tractor and Machinery Association of Australia’s (TMA) March 2023 sales report.

The organisation cites relatively high interest rates, increased machinery costs and availability problems as the main causes for the fall in numbers and dampening effect on demand.

Related: Rising interest rates, processing delays cause tractor sales fall

“With the Temporary Full Expensing program due to end on June 30, there may be a spurt in sales in the coming months to come as we play a game of wait and see,” said TMA executive director, Gary Northover.

Across the states, sales in Queensland were down nine per cent YOY and is now 13 per cent behind YTD, while NSW was down 16 per cent to sit 25 per cent off YTD.

Victoria recorded a drop of 23 per cent YOY and 26 per cent behind YTD. Sales in Western Australia lifted 12 per cent off the back of strong high horsepower tractor sales but remains 10 per cent behind last year.

South Australia recorded a 26 per cent rise on the same month last year and now sits 10 per cent behind YTD while Tasmania was off two per cent for the month and 15 per cent off YTD. Finally, sales in the NT was up 27 per cent YOY to sit 35 per cent ahead YTD.

All machine categories have recorded drops in sales so far this year with the under 40hp category down three per cent. “This category, often referred to as the ‘leisure’ market is particularly sensitive to interest rate rises and this is beginning to impact,” Northover said.

The 40 to 100hp range was down 12 per cent in the month and is now 21 per cent behind year to date. The 100 to 200hp category fell by 22 per cent YOY and remains 26 per cent behind YTD.

Meanwhile, the 200hp plus range picked up by eight per cent in March after experiencing a large fall of 60 per cent YOY in February, but still sits 29 per cent behind YTD.  

“Whilst tractor sales figures are down across the board, this is off historically high levels and the much hoped for ‘soft landing’ appears likely, indeed, whilst machine numbers are down, the dollar value is a mere three per cent behind last year,” Northover said.

In contrast to the tractor market’s softened conditions, sales of combine harvesters continue to hold strong with another 28 units sold in March as buyers stock up ahead of harvest season later in the year.

“On a rolling 12 months basis, combine harvesters have enjoyed a second successive year in excess of 1100 units sold,” Northover said.

Baler sales were down seven per cent in March and remain in line with last year while sales of out-front mowers continue to fall, off by 10 per cent for the month.