Ag Industry, TMA

Tractor sales slip in June

Tractor sales continued their decline in June, however a more realistic comparison should emerge from next month, the TMA says

Sales of agricultural tractors were off considerably in the month of June with just over 1,300 units sold across Australia.

This was 48 per cent less than the same month last year and brings the year-to-date position to a level which is 30 per cent behind the corresponding period in 2023.

As flagged last month, June 2023 was the last month of the Federal Government’s temporary full expensing program which saw last minute sales at unprecedented levels.

The TMA expects a more realistic month-to-month comparison to appear from July onwards as the impact of this incentive disappears.

Overall, the association is still forecasting a reasonably healthy 2024 for sales as winter rains across the country deliver ideal growing conditions for the foreseeable future, although with each month the outlook continues to soften as farmers play it safe.

Looking at the state-by-state picture, Queensland was down 47 per cent against the same month last year to be 27 per cent behind year to date.

New South Wales was down 56 per cent in June and is now 38 per cent behind for the year while Victoria was also down, dropping by 43 per cent this month to be 28 per cent below last year.

Western Australia reported a drop of 41 per cent to be down 16 per cent compared with the same time last year.

South Australia had another big drop of 49 per cent and is now down 32 per cent for the year to date.

Tasmania was down 38 per cent for the month with sales in the Northern Territory also finishing 38 per cent down.

Sales in each of the reporting categories were well off this month with the small, under 40hp (under 30kw) category down by 33 per cent to be 27 per cent behind for the year to date.

The 40hp to 100hp (30-75kw) range was also down again, this time by 53 per cent, and is now behind 41 per cent year to date.

The 100hp to 200hp (75-150 kw) category was down by 50 per cent to be 31 per cent off for the year.

Finally, the 200hp plus (150kw plus) range, which has been largely positive all year, continues its drop off.

This category was 41 per cent down compared to the same month last year and is now 16 per cent behind for the year to date.

Sales of combine harvesters are off to a slow start with about 15 per cent of this year’s expected number sold so far.

Baler sales were again down, due to difficult growing conditions for hay, and are now 20 per cent behind for the year to date.

Sales of out-front mowers were again up, this time by around 7 per cent for the month.

TMA annual conference

This year’s TMA Conference scheduled to be held next week – Thursday July 18 – at the iconic Melbourne Cricket Ground, a venue the association last visited in 2017.

Continuing the theme: Towards 2030, the conference will feature an exciting line-up of speakers on critical industry issues such as AI in agriculture, farm safety and more.

The conference will also have the regular economic update from Westpac’s Justin Smirk and the state of industry report from Kynetec.

The event is almost sold out with last tickets available at the TMA website

Finally, the TMA’s annual State of the Industry report is now available for download on the TMA website.

The TMA can also be followed on Facebook and LinkedIn.

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