Harvester sellers reap benefits in October

By: Gary Northover - President, Tractor & Machinery Association

Presented by

Could Australia’s high rate of farm machinery sales continue into 2022? It’s looking more likely after a positive October result, the Tractor & Machinery Association’s Gary Northover says

Harvester sellers reap benefits in October
Around 1,000 combine harvesters will have been sold by the end of 2021, according to predictions by the Tractor & Machinery Association

The month of October has been another outstanding one for agricultural equipment sales with Combine Harvesters the clear standout.

The long-promised lift in Combine Harvester sales has now materialised with half the years supplies delivered in October, a mammoth effort despite the challenges associated with the well documented slowdowns at the various Australian Ports.

This now puts the full year position at around 1,000 units, a figure not seen for some years.

Tractor sales across the nation were also again strong with a rise of 16 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 now approaching 17,000 tractors per annum.

Whilst there remain considerable supply challenges and long lead times, current demand is being satisfied 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.

Beginning in NSW, which has been on a positive run for around 18 months now, sales were up 20 per cent for the month and now 46 per cent ahead YTD, Queensland was again strong up 10 per cent now up 26 per cent YTD and Victoria was up 12 per cent and is 16 per cent up YTD.

Sales in Western Australia recorded a mammoth 56 per cent lift for the month in support of what is developing into a big harvest season, now 37 per cent ahead for the year. South Australia was steady and now 15 per cent ahead YTD, Tasmania dipped 3 per cent andsales into the Northern Territory enjoyed an 8 per cent rise.

All performance reporting categories have enjoyed strong rises for the year, beginning with the under 40 horsepower (30kw) range which was up 8 per centin October despite ongoing supply challenges and remains 16 per cent ahead of last year.  

The 40 to 100hp (30-75kw) range was again up strongly 15 per cent in the month, now 30 per cent up YTD, the 100 to 200hp (75-150kw) category was up 21 per cent to now be 24 per cent ahead YTD.The large 200 hp (150kw)PLUS range had another strong rise of 24 per cent and now sits 64 per cent ahead of last year.

Baler sales were down significantly as the impact of the previous two years of record sales takes effect on demand, they remain 24 per cent behind last year’s outstanding season. Finally, sales of Out - Front Mowers are steady, up 5 per cent YTD.

With regards to the forward outlook, the expected drop off in 2022 coinciding with the end of the previously mentioned government programs is looking less likely to occur with each month.

The general strength of the agricultural market combined with such things as the ongoing restocking of fleets following the droughts and bushfires, along with the growth in tree changers becoming hobby farmers is leading to the view that we may say a continuation of these buoyant conditions beyond initial expectations. There is still a way to go, and we will watch with interest.

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