Farmers have bought 15,700 new tractors in the past 12 months, a whopping 37 per cent more than the previous year.
Sales of tractors continued their strong run in May with an 18pc jump on the same month last year.
Latest data from the Tractor and Machinery Association of Australia (TMA) confirmed the continuation of the tractor buying spree despite problems with the supply chain.
TMA executive director Gary Northover said many in the industry expected the June-July period would be a testing time.
"The federal government's instant asset write-off scheme comes to an end even though it is to be continued for a further two years in the form of the temporary full expensing program.
"A major contributor to the supply challenges being experienced has been the creation of bottlenecks in Australian ports.
"We have been in discussion with the federal Agriculture Minister David Littleproud on this matter.
"He has advised that a range of pilot projects is to be established in conjunction with importers with the aim of reducing red tape and improving productivity while maintaining biosecurity standards.
"We will monitor these projects with interest as they unfold," Mr Northover said.
On the tractor buying front, all states reported strong activity last month with Victoria reporting an increase of six per cent on May last year with sales now 32pc ahead for the year.
Queensland recorded a 19pc rise in May, pushing up sales by 35pc for the year-to-date while NSW was again up, 30pc on the same month last year and 78pc higher year-to-date.
Western Australia sales picked up another 13pc in May and are now 48pc ahead for the year so far.
South Australia reported a 34pc increase for May while sales in Tasmania slipped five per cent for the month.
All performance reporting categories enjoyed rises again for the month with the under 30 kilowatt (40 horsepower) range up 22pc for the month and 47pc for the year-to-date.
The 30-75kW range (40-100hp) was up strongly again, 28pc in the month and 50pc for the year-to-date while the 75-150kW (100-200hp) category nudged up five per cent and is now sitting 29pc higher year-to-date.
The 150kW (200hp) range enjoyed another strong month with sales jumping 21pc and are now 60pc higher year-to-date.
"Sales of combine harvesters are yet to get going, however dealers continue to report a healthy level of inquiry," Mr Northover said.
"Baler sales dipped again for the month but are still up 33pc on an annualised basis and sales of out-front mowers were steady and remain 33pc ahead of the same time last year."
Mr Northover said the TMA was still to finalise its response to the recent ACCC report on agricultural machinery which contained a number of recommendations concerning warranties, right to repair and use of data.
"We will continue to work with all stakeholders to ensure that appropriate outcomes are achieved for the industry.
"We are fortunate to have Mick Keogh, deputy chairman of the ACCC, scheduled to speak at the upcoming TMA conference to be held in Melbourne at the Hyatt Essendon Fields on Tuesday, July 20, which will be a great opportunity to further explore the findings," Mr Northover said.