Tractor sales have stabilised in the month of June, the Tractor and Machinery Association says, with two states and two size categories seeing a welcomed boost
June saw national tractor sales become somewhat steadier, in the face of continuing climate challenges and general conservative sentiment from farmers.
There were around 1,300 tractors sold for the month, which is down about 4 per cent on the same month last year, and means overall sales are about 10 per cent behind for the year to date.
Reports coming from suppliers suggest that the month began slowly, however with the rains that hit much of south-eastern Australia from the middle of the month, indicators are that sentiment improved and there is every hope that this will extend into the new financial year.
There is no doubt that challenges exist in the market, with pricing still high off the back of supply challenges experienced in the past few 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.
Inventory levels, which have been reported previously as being very high, are starting to come down and this makes the industry hopeful that this will lead to improved financial conditions for our dealers.
Looking around the states, it is easy to see the impact of the drought in the southeast corner with Victoria, Tasmania and South Australia recording significant reductions in the month of June compared to the same month last year.
Victoria was down 21 per cent compared to June 2024 and is now 20 per cent behind year to date.
South Australia was down 30 per cent for the month and remains 21 per cent behind year to date, while Tasmania was also behind 21 per cent for the month of June.
On the flip side, Queensland reported a healthy lift, up 13 per cent on the same month last year and now sits 6 per cent behind year to date.
Western Australia, the standout for the year, was 14 per cent up compared to June 2024 and remains 2 per cent up for the year.
NSW was behind 1.5 per cent for the month and remains 9 per cent off compared to the same time last year, while Northern Territory sales dropped 10 per cent for the month.
There was a lift in demand for 40hp to 100hp (30-75kw) tractors, which were up 1.5 per cent for the month but remain 5 per cent below year to date.
The 200hp and above (150kw and above) size range was up 6 per cent compared to June 2024, but still remains 20 per cent behind for the year to date.
Sales in the under-40hp (under-30kw) range were down 11 per cent for the month to now sit 5 per cent behind for the year to date, while the 100hp to 200hp (75-150kw) range was down 9 per cent compared to June 2024 and remains down 13 per cent on a year-to-date basis.
Sales of combine harvesters remain challenging and it is clear the market is well stocked for machines at this stage.
Sales are up 2.5 per cent on last year but order intake suggests that a number well down on last year’s figure is to be expected.
Baler sales were again down for the month, being 33 per cent lower than the same time last year, although there seems to be an improvement in sentiment with the recent rains suggesting there could be some better news coming.
Finally, sales of out-front mowers enjoyed a bounce of 8 per cent for the month but still remain 27 per cent behind for the year to date.
The TMA’s annual conference will be held in Melbourne on Thursday July 24.
Tickets are still available with more details – along with the speaker lineup – available online here.
