Tractor sales stabilise amid rain-boosted confidence

Australia’s tractor market steadied slightly in June, with around 1300 units sold which is down four per cent compared to the same month last year, and now sitting 10 per cent behind for the year to date, according to the Tractor and Machinery Association of Australia's (TMA) latest monthly sales report.

According to the TMA, suppliers reported a slow start to the month but widespread rainfall in southeastern regions helped lift buying confidence in the second half. “There’s every hope that this will extend into the new financial year,” the TMA said.

The organisation added high prices continue to affect the market due to supply chain disruptions in recent years. "This is being offset by interest rate deals being offered by many suppliers however, farmers are still playing a wait and see game before making purchases," TMA said.

On a more positive note, inventory levels are beginning to decline, which could improve conditions for dealers moving forward.

Drought conditions have continued to impact key agricultural regions, with tractor sales in Victoria down 21 per cent for the month and now 20 per cent behind YTD. South Australia recorded a sharp 30 per cent drop in June and is now 21 per cent down YTD, while Tasmania was also down 21 per cent. In contrast, Queensland saw a 13 per cent lift for the month, though it remains six per cent behind for the year. Western Australia was a standout performer, up 14 per cent in June and two per cent ahead year to date. New South Wales slipped slightly, down 1.5 per cent for the month, and the Northern Territory declined 10 per cent.

Across the categories, sales in the 40–100hp range rose 1.5 per cent in June but are still five per cent down year-to-date. The 200hp+ category also saw a six per cent lift, although it remains 20 per cent behind for the year. Smaller tractors under 40hp were down 11 per cent for the month, and mid-sized units in the 100–200hp range fell nine per cent.

Combine harvester sales are up slightly (2.5 per cent) compared to last year, but order intake suggests a weaker outlook moving forward. Baler sales fell sharply by 33 per cent, although the recent rain could signal better news to come.

Meanwhile, out-front mower sales rose eight per cent for the month, though still 27 per cent down year to date.