Tractor Sales boom continues in August

By: Gary Northover

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With dealers making “aggressive” orders, tractor sales were 40 per cent higher in August 2021 than they were at the same time last year, according to the latest news from the Tractor & Machinery Association

Tractor Sales boom continues in August
Sales have been strong in all states, supported by expectations for a bumper season.

 

The month of August has been another outstanding one for tractor sales across the nation with a rise of 40 per cent on the same month last year.

This now sees the year-to-date figure 30 per cent above last year with a running rate well in excess of 16,000 tractors per annum.

Whilst there remains considerable supply challenges and long lead times, the current demand is being fed by aggressive ordering by dealers back in 2020 in anticipation of strong ongoing activity.

Sales have been strong in all states, fuelled by the expectations of a bumper season coming up supported by the Government’s various company tax incentive programs.

Sales in NSW, which has been on a positive run for nearly 18 months now, are up 44 per cent for the month and are now 52 per cent ahead YTD, Queensland was again strong up 38 per cent for the month and up 26 per cent YTD; and Victoria was up 18 per cent and is 17 per cent up YTD.

Sales in Western Australia recorded a mammoth 64 per cent lift for the month in preparation for what promises to be a bumper harvest season; now 34 per cent ahead for the year.

South Australia was likewise extremely busy, up a whopping 83 per cent for the month and Tasmania finished 60 per cent ahead. Sales into the Northern Territory enjoyed a 125 per cent rise!

All performance reporting categories have enjoyed strong rises for the year, however the under 40 hp (30kw) range was up just 6 per cent in August due to ongoing supply challenges – keeping it 18 per cent ahead of last year.

The 40 to 100hp (30-75kw) range was again up strongly 23 per cent in the month, now 31 per cent up YTD; and  the 100 to 200hp (75-150kw) category was up 72 per cent to now be 26 per cent ahead YTD.

The large 200 hp (150kw) Plus range had another strong rise of 144 per cent and now sits 67 per cent ahead of last year.

Sales of Combine Harvesters have been forecast to be strong this year and deliveries have begun around the nation in preparation for this year’s harvest.

With more than 200 units sold this year to date, expectations are for a strong 2021, with a return to the 800+ unit sales levels not seen for a year or two.

Baler sales were down in August and remain 13 per cent behind last year’s outstanding season. Finally, sales of Out – Front Mowers are flying, up 11 per cent YTD.

As we have been highlighting for some months now the industry is coping with a range of extremes on the supply side at present.

Machine deliveries continue to be pushed out, particularly in the smaller ranges and price rises for raw materials are beginning to impact the finished product.

New challenges continue to emerge with items ranging from computer chips to tyres now having an impact.

We continue to engage with the Productivity Commission along with a number of key customer groups such as the National Farmers Federation and Grain Producers Australia on the subject of Right to Repair. 

We have released a Statement of Principles supporting farmers’ ability to repair their own machines. This Statement of Principles, which can be found on the TMA website (www.tma.asn.au) clearly sets out this support whilst drawing the distinction between Right to Repair and Right to Modify.

The Productivity Commission findings are due to be handed down on 29 October, 2021, and we remain hopeful of a workable outcome.

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