Tractor Sales at levels previously unseen in Australia.Posted by Mim Monkivitch, 08th September 2021
The month of August has been another outstanding one for tractor sales across the nation with a rise of 40% on the same month last year. This now sees the year-to-date figure 30% above last year with a running rate well in excess of 16,000 tractors per annum.
Whilst there remains considerable supply challenges and long lead times, the current demand is being fed by aggressive ordering by dealers back in 2020 in anticipation of strong ongoing activity.
Sales have been strong in all states fuelled by the expectations of a bumper season coming up supported by the Government’s various company tax incentive programs.
Beginning in NSW which has been on a positive run for nearly 18 months now, up 44% for the month and now 52% ahead YTD, Queensland was again strong up 38% now up 26% YTD and Victoria was up 18% and is 17% up YTD.
Sales in Western Australia recorded a mammoth 64% lift for the month in preparation for what promises to be a bumper harvest season now 34% ahead for the year. South Australia was likewise extremely busy, up a whopping 83% for the month and Tasmania finished 60% ahead. Sales into the Northern Territory enjoyed a 125% rise!
All performance reporting categories have enjoyed strong rises for the year, however the under 40 hp (30kw) range was up just 6% in August due to ongoing supply challenges but remains 18% ahead of last year.
The 40 to 100hp (30-75kw) range was again up strongly 23% in the month, now 31% up YTD, the 100 to 200hp (75-150kw) category was up 72% to now be 26% ahead YTD. The large 200 hp (150kw) PLUS range had another strong rise of 144% and now sits 67% ahead of last year.
Sales of Combine Harvesters have been forecast to be strong this year and deliveries have begun around the nation in preparation for this year’s harvest. With more than 200 units sold this year to date, expectations are for a strong 2021, with a return to the 800+ unit sales levels not seen for a year or two.
Baler sales were down in August and remain 13% behind last year’s outstanding season. Finally, sales of Out – Front Mowers are flying, up 11% YTD.
As we have been highlighting for some months now the industry is coping with a range of extremes on the supply side at present. Machine deliveries continue to be pushed out, particularly in the smaller ranges and price rises for raw materials are beginning to impact the finished product. New challenges continue to merge with items ranging from computer chips to tyres now having an impact.
We continue to engage with the Productivity Commission along with a number of key customer groups such as the NFF and GPA on the subject of Right to Repair. We have released a Statement of Principles supporting farmers’ ability to repair their own machines. This Statement of Principles, which can be found on the TMA website (www.tma.asn.au) clearly sets out this support whilst drawing the distinction between Right to Repair and Right to Modify.
The Productivity Commission findings are due to be handed down on October 29th, 2021, and we remain hopeful of a workable outcome.
Executive Director, TMA