The big question Australia's tractor dealers are asking is when will the industry's massive sales upswing come to an end.
Tractor and Machinery Association of Australia executive director Gary Northover said with sales running about 50 per cent ahead of what has traditionally been considered a great year, there was no doubt this trend could not continue.
Mr Northover said delays in supply had served to smooth out peaks in the market but they were beginning to see signs of when the current boom might end.
"Ownership costs are rising steadily with both purchase prices and financing costs rising steadily and the current tax incentives are in their final year," he said.
"The challenge for dealers will be to get the timing right regarding inventory given the prospect of machines ordered 12 to 18 months earlier, might arrive at a period of weakened demand."
Sales in August increased 22 per cent year-on-year and are sitting 2.5pc ahead for the year-to-date.
Mr Northover said this was a particularly strong result given the rush of buyers in June who were keen to make the most of the federal government's temporary full expensing program.
"The industry's ability to deliver tractors in such large quantities is due to the regular forward ordering that has been occurring for two years now in anticipation of supply challenges," he said.
"The fact remains that if a farmer wants a specific 'bespoke' tractor ordered from the factory then delivery will be at least 12 months.
"Most dealers now are resisting taking forward orders because of the uncertainty surrounding supply, combined with the price movements that are beginning to occur across the board."
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Sales in Queensland were up a sizeable 46pc for the month and are sitting 13pc ahead for the year-to-date. In NSW sales were up 8pc to sit 1pc behind the year prior.
Victorian sales lifted 24pc and are now up 3pc on last year, which Mr Northover said was due mainly to the supply of small horsepower units.
He said the further arrival of large horsepower machines had seen sales in Western Australia increase 30pc for the month to sit 2pc ahead for the year-to-date.
Sales in South Australia increased 13pc and sales in the Northern Territory rose 89pc. In Tasmania sales were down by 23pc.
Sales in the under 30 kilowatt (40 horsepower) category lifted 25pc to sit 10pc ahead for the year-to-date.
The 30 to 75kw (40 to 100hp) range increased 21pc for the month and remains 4pc ahead for the year-to-date while the 75 to 150kw (100 to 200hp) segment was up 7pc to also sit 4pc behind for the year-to-date.
Mr Northover said the 150kw (200hp) plus range was the standout again and was 55pc ahead of the same month last year to finish just 1pc off for the year-to-date.
He said harvester sales were ramping up in preparation for this year's harvest and were now 19pc ahead of the same time last year.
"There is every expectation of another 1000 plus year for this product as the renewal of fleets occurs in anticipation of another bumper harvest," Mr Northover said.
Baler sales slowed throughout winter and are now down 19pc on last year while sales of out-front mowers are down by 3pc.
