Farmers put farm machinery purchases into a higher gear

They have had to fine-tune their forecasting of machinery demand and ramp up their communications with major factories overseas to ensure dealers' yards aren't stripped bare.

Most of Australia's farm tractors and harvesting and haymaking gear comes from Europe and the US.

The red-hot demand is being driven by improved seasonal conditions in many areas, the recent bumper winter grain harvest and the federal government's instant asset tax write-off scheme to help stimulate the economy.

General manager of Case IH for Australia and New Zealand Pete McCann said farm machinery was flowing into Australia despite some issues at container ports.

"The season is certainly off to a great start and we are seeing strong levels of activity and interest across all segments of the business," he said.

"There's a real focus on combines at the moment from growers who are keen to lock in early delivery with many required by the end of the current financial year."

Tim Needham, general manager of product for Landpower, the Australasian distributor of a number of leading machinery brands including Claas, Amazon, Vaderstad and Grimme, said he had spent many nights since the COVID outbreak on video calls with factories in Europe.

"Forecasting is the absolute key (to ensuring the smooth flow of farm machinery to Australia)," he said.

Landpower started to ramp up its forecasting process about 18 months ago and the move has paid big dividends during the pandemic.

The company services a network of Claas Harvest Centres in Australia and New Zealand with around half owned by Landpower and the rest operated with partner dealers. As well, the company distributes its brands to a group of multi-franchise dealers.

Mr Needham said the improved forecasting started with monthly individual updates from every dealer location on how demand was tracking against their initial budget numbers which Landpower used to plan delivery schedules with factories and shippers.

The Claas tractor, grain harvester and haymaking equipment factories in France and Germany were now receiving more orders than they had the capacity to build which heightened the importance of accurate purchasing forecasts and early ordering, Mr Needham said.

"We have forecast strongly, we've placed orders earlier than ever to lock in supply and we are shipping it early."

Mr Needham shipping schedules weren't being helped by a buildup of containers in Australia while air freight of emergency orders of spare parts were becoming an increasing concern because of rising costs and limited flights.

New Holland national product manager Tony Peters doesn't expect any supply problems despite surge in buying interest from farmers.

"We are finding a huge lift in quoting activity in the eastern states," Mr Peters said.

"We have forecast significant demand for delivery before June 30 this year and have brought forward production of all product lines in anticipation to meet this demand.

"At this stage we don't see any major issues with supply but those farmers who require specific options to be built on their machines, notably tractors and combines, will need to place their orders now to ensure their early delivery target.

"New Holland dealers have also recognised the demand and most have planned with orders already placed for early supply across all segments.

"The short message is that supply will be okay and with low finance interest rates, 2021 will be a good year," he said.

John Deere ag sales and marketing director for Australia and NZ Steve Wright said global demand for farm machinery was rising.

"Demand is strong across our entire agriculture and turf product lines from ride-on mowers to sprayers," he said.

Inquiries for combines were also strong after last season's big grain harvest.

"There has also been a surge in demand for precision ag technology as customers have either integrated new technologies into their farming systems or taken the opportunity to update older technology," Mr Wright said.

"Following the bumper harvest last year coupled with the federal government's instant asset write-off, we are expecting industry sales in the next 12 months to be stronger than previous years."