Tractor sales slump continues

The September sales data from the Tractor and Machinery Association of Australia (TMA) is in, with the month representing a continuation of the downward trend experienced through the year so far.

Around 1000 new tractors were sold last month compared to around 1500 for the same month last year, while the year-to-date tally is now down 23 per cent.

“It is now quite evident that the industry is headed for a subdued period as a result of a number of factors, including the recently declared El Niño for eastern Australia,” says the TMA.

“Whilst spring rains have been helpful and there remains the prospect of a reasonable harvest season, a more pessimistic mood is now being seen among farmers leading to declines in demand for new machinery.

“As we have been saying for some time now, the industry has come off two years of sales that were 50% ahead of what is normally considered a good year of 12,000 tractors. This year’s forecast presently has us at this number for the year, but the trend line is indicating further falls to come in 2024.”

Tractors sales sustained significant drops everywhere bar the Northern Territory in September, as follows:

Queensland: Down 46% for the month and down 21% year to date
New South Wales: Down 43% for the month and down 24% year to date
Victoria: Down 29% for the month and down 28% year to date
Western Australia: Down 28% for the month and down 22% year to date
South Australia: Down 40% for the month and down 16% year to date
Tasmania: Down 2% for the month and down 22% year to date
Northern Territory: Up 100% for the month but down 13% year to date

Drops were also experienced across all the major machine categories, as follows:

Under 40hp (30kW): Down 32% for the month and down 22% year to date
40-100hp (30-75kW): Down 46% for the month and down 24% year to date
100-200hp (75-150kW): Down 36% for the month and down 26% year to date
200hp (150kW) and over: Down 29% for the month and down 17% year to date

However, combine harvesters are bucking the trend, with sales lifting in September and the 500 or so units delivered this year equating with growth of 22% over the previous corresponding period, while sales of balers were also up and are now 13% ahead year to date. Sales of out-front mowers remain steady.