Tractor sales soar in April

The COVID-19 pandemic has not stopped Aussie farmers from opening up their hip pockets, as the latest sales report by the Tractor and Machinery Association of Australia (TMA) showed new tractor sales have shot up by 40 per cent year-on-year, now sitting seven per cent ahead on a year-to-date (YTD) basis.

“April has turned into a ‘blowout’ month for tractor sales across most of Australia as the industry, driven by improved weather prospects along with the increase in the Instant Asset Write Off program to $150,000 continues to avoid the current troubles associated with the COVID-19 virus,” said TMA executive director, Gary Northover.

In other positive news, sales of tractors in the eastern states have also lifted considerably following months of poor numbers due to the drought and bushfires.

Victoria continues to enjoy a bumper year, up another 44 per cent on the same month last year, now 22 per cent ahead for 2020.  NSW was up 38 per cent for the month, now four per cent up YTD.

Sales in Queensland increased by a whopping 78 per cent compared to last April and now sits three per cent ahead for the year. South Australia enjoyed the same success story, with sales up 63 per cent for the month and now 17 per cent ahead for the year.

Tasmania also reported a 52 per cent lift in April to sit 15 per cent YTD. However, sales in Western Australia continued to lag – 10 per cent down for the month and sitting 15 per cent behind YTD.

Strong increases have also been recorded across all horsepower segments, with the mid-horsepower category (100 to 200hp) notching the highest increase of 63 per cent YoY.

In the under 40hp category, sales were up 26 per cent for the month and sitting 3.3 per cent ahead YTD.

The 40 to 100hp range also experienced strong growth of 37 per cent from last April, now one per cent ahead for the year. Last but not least, the 200hp and above range enjoyed a lift of 27 per cent for the month and is now six per cent behind YTD.

However, despite these very positive results, the TMA has warned that the upwards momentum might drop off due to supply shortages and the short window for the Instant Asset Write Off.

“Firstly, there can be no denying that the Government's Instant Asset Write Off program has stimulated a lot of sales however this program is due to be scaled back on June 30,” Northover said.

“The TMA has been working with the MTAA (Motor Traders Association of Australia) to lobby Canberra to have this program extended to at least September 2020 as we believe it is instrumental in supporting the general economic recovery.

“Secondly, we are beginning to see signs of supply shortages in the market,” Northover added.

“With US and European factory closures occurring as part of the wider COVID-19 lockdowns, supply of machinery to the Australian market is becoming unpredictable, a situation that is expected to get worse before it gets better.

“So, whilst we are enjoying the present level of activity, we remain watchful.”

In other machinery categories, sales of combine harvesters continue to be slow with only a small number of sales completing in April with no great prospects for the year ahead despite the improving conditions, the TMA reported.

Baler sales continued on its upwards trajectory - up three per cent YTD. Sales of out front mowers also recorded an impressive 21 per cent increase in sales YTD.