A record $2.3 billion worth of new tractors were sold in Australia last year.
It was also a record-breaking year in terms of unit numbers, with around 19,000 tractors sold.
Tractor and Machinery Association of Australia executive director Gary Northover said 2022 was the second consecutive year such strong activity had been seen.
December sales were up 9 per cent on the same month a year prior and national sales for the calendar year lifted by 3pc.
"The drivers of this activity have been well documented with the strength of the market for agricultural commodities, as evidenced by this year's record grain harvest, combined with the government's temporary full expensing program," Mr Northover said.
"However, this has all been underpinned by the strength of the used equipment market.
"Farmers have been taking advantage of the used value of their machines and upgrading to newer, lower emissions tractors."
All states except South Australia had increases in December.
Mr Northover said Queensland continued its recent strong run, with an 11pc rise to be 14pc up for the year.
He said sales in Western Australia were again strong, up a mammoth 31pc to end the year 4pc ahead.
In NSW sales were in line with 2021 figures and finished down 1pc for the year.
Victorian sales increased 18pc for the month to finish 2pc ahead for the year.
South Australia recorded a 6pc decline to be 3pc behind for the full year.
In Tasmania there was a 1pc rise for the month but sales were down for the year by 10pc, while sales in the Northern Territory finished 11pc ahead on the year prior.
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The under 30 kilowatt (40 horsepower) category experienced the biggest rise of the month, up 30 per cent to finish the year 12pc ahead of 2021 figures.
Sales in the 30 to 75kw (40 to 100hp) range were up 2pc for the month and finished 2pc ahead for the year.
In the 75 to 150kw (100 to 200hp) catgoery sales increased by 6pc in December but were 2pc behind for the year.
Sales in the 150kw (200hp) plus range dropped 8pc for the month but finished the year 3pc ahead.
Mr Northover said it wasn't just tractors that experienced a big year, with harvester sales again up strongly and a total of 1145 units sold.
He said this represented a 6pc rise on 2021 figures.
Baler sales were down 33pc in December and for the year overall as production challenges continued in the hay market.
Out-front mower sales were down by 21pc for for the year.
Looking at the year ahead, Mr Northover said the outlook remained positive, even with the federal government's temporary full expensing program coming to an end in June.
However, he said the biggest issue for the industry continued to be getting machines.
"Some brands now have lead times out to 2024 for larger product in particular and remain reluctant to quote prices due to the ongoing volatility in the supply chain," Mr Northover said.
"An example of this can be seen in the recent movements in the shipping market.
"The price for containerised freight has dropped considerably off the back of the effective shutdown of China, however the price for RORO has leapt more than fourfold due to a mix of increased volumes, increased turnaround times at port and competition for ships due to the massive supply of military equipment to Europe."
