May tractor sales soar higher

By: Gary Northover, Executive Director of the Tractor & Machinery Association

Presented by

More than 15,700 tractors have been sold in Australia so far this year, ahead of the end of the Instant Asset Write Off Scheme by June 30

May tractor sales soar higher
Sales of 200 hp plus tractors were 60 per cent ahead for the year at the end of May

 

Sales of agricultural tractors continued their strong run in May with an 18 per cent rise on the same month last year.

The last 12 months have now seen in excess of 15,700 tractors sold in this country which is 37 per cent ahead of the previous 12-month period.

The strength of the market continues to surprise many as the challenges being experienced with supply combined with the continuation of the extraordinary demand would suggest that these numbers remain beyond expectations.

Many in the industry see the upcoming June/July period as likely to see a testing time as the Federal Government's Instant Asset Write Off Scheme comes to an end, even though it is to be continued for a further two years in the form of the "Temporary Full Expensing" program.


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A major contributor to the supply challenges being experienced has been the creation of bottlenecks in Australian Ports.

We have been in discussion with the Federal Minister David Littleproud on this matter and have been advised that a range of pilot projects is to be established in conjunction with importers with the aim of reducing red tape and improving productivity whilst maintaining biosecurity standards.

We will monitor these projects with interest as they unfold.

All states reported strong activity with Victoria reporting an increase of 6 per cent on May last year, now sitting 32 per cent ahead for the year to date; Queensland was up 19 per cent to be 35 per cent up YTD and NSW was again up, 30 per cent on the same time last year and now 78 per cent for the YTD.

Western Australian sales picked up another 13 per cent to be 48 per cent ahead for the year, sales in South Australia reported a 34 per cent increase for the month and finally Tasmania finished the month 5 per cent behind.

All performance reporting categories enjoyed rises again this month with the under 40 hp (30kw) range up 22 per cent for the month to be 47 per cent ahead YTD. 

The 40 to 100hp (30-75kw) range was again up strongly 28 per cent in the month (50 per cent YTD), the 100 to 200hp (75-150kw) category was up 5 per cent (29 per cent YTD).

The large 200 hp (150kw) plus range had another strong rise up 21 per cent and is now 60 per cent ahead for the year.

Sales of Combine Harvesters are yet to get going, however dealers continue to report a healthy level of enquiry.

Baler sales dipped again for the month but are still up 33 per cent on an annualised basis and sales of Out - Front Mowers were steady and remained 33 per cent ahead of the same time last year.

The ACCC released its report on the Agricultural machinery market this month which contained a number of key recommendations concerning warranties, right to repair and use of data.

The TMA is yet to formally respond to these recommendations but will continue to work with all stakeholders to ensure that appropriate outcomes are achieved for the industry.

We are fortunate to have Mick Keogh, Deputy Chairman of the ACCC scheduled to speak at the upcoming TMA Conference to be held once again this year in Melbourne at the Hyatt Essendon Fields on Tuesday July 20th which will be a great opportunity to further explore the findings

 

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