Record tractor year still on track

Record tractor year still on track says TMAA

Machinery
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Tractor sales in September were up 29 per cent on the same time last year.

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Tractor and machinery sales are continuing to surge with 2020 still on track to be a record year according to the latest figures from the Tractor and Machinery Association of Australia.

Tractor sales in September were up 29 per cent on the same time last year and are now up 22pc year to date.

TMAA noted that the ongoing strong demand for agricultural produce combined with favourable weather conditions, and the federal government's Instant Asset Write Off program, are supporting record sales volumes.

Previous record years have seen tractor sales of 12,000 achieved but 2020 looks like going past the 13,000 mark for the first time since the 1980's.

Activity across most states remains positive with the continued recovery in NSW the standout - up a whopping 41pc on the same time last year and now sitting 30pc ahead for the year.

Victoria reported another strong month, up 27pc and now 22pc ahead year to date while Queensland was up 22pc to be 14pc up for the year.

Western Australia sales were down due to some negative weather events and remains 4pc behind last year.

Sales in South Australia are back on track with another strong month after a poor 2019. They are now 60pc up year to date.

Activity in Tasmania remains strong, now 25pc ahead for the year.

The TMAA noted significant strength in the smaller end of the market and again attributed much of that acitivity to the Instand Asset Write off scheme.

The under 40hp (30kw) range was up 71pc for the month and now sits 29pc ahead for the year to date while the 40 to 100hp (30-75kw) range was again up strongly 27pc now 22pc ahead for the year.

The 100 to 200hp (75-150kw) category bounced, up 26pc and still up 31pc for the year while sales in the large 200 hp (150kw) plus range where again down another 23pc leaving this category 9pc behind YTD.

Demand for large tractors is being impacted by a range of factors including the persistent drought in regions within northern NSW and southern Queensland and the ongoing challenges being felt in the West.

Further pressure is being felt as a result of recent price increases.

Related reading:

Coronavirus and hot demand hits delivery of new tractors

With regards to other products, sales of combine harvesters remain steady with most product now in place for the upcoming harvest season.

The full year picture is likely to be around 15 to 20pc down on last year.

Baler sales were again very strong, remaining up 38pc year to date while sales of Out - Front Mowers were strong and still 15pc ahead of the same time last year.

The outlook for the industry remains extremely positive, particularly in light of the recent budget announcements still to be approved in parliament.

In the latest TMA Quarterly Dealer Business Sentiment Survey, which includes data from 68 dealers across Australia, 56pc of respondents said they were looking to increase their employment levels further.

In November 2019, over 60pc of respondents said they were likely to decrease their workforce.

The full results of the TMA Quarterly Dealer Business Sentiment Survey can be viewed at www.tma.asn.au

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