Tractor Sales continue to power ahead.
Agricultural Tractor Sales in April recorded another solid improvement, setting the scene for another record year.
Overall Tractor Sales were up 5% in the month of April and now sit 8% ahead on a year to date basis.
There appears to be a variety of explanations for this up lift ranging from a synchronisation in the refinancing cycle occurring to the positive impact of rain in some regions. Despite all of this, the industry remains cautiously optimistic as the general appetite for new deals appears to be steadying somewhat.
The 100-200Hp range is behind this lift, up 31% on last month and now 29% ahead on the year to date.
The under 40 HP segment was up a further 4% and now sits in line with last year.
The 40 to 100 HP segment was steady in the month and continues to perform strongly, up 6% this year.
Whilst the 100-200 HP segment is flying, the larger range, above 200 Hp dropped back 12% in April and now trails last year by 4%.
Queensland and WA experienced very strong months in April up 19% and 24% respectively.
Out in the West, conditions have been quite steady for some months as early season rains have reinforced confidence. Up North, we have seen quite solid rainfalls which has also instilled confidence. Many of the orders delivered last month were placed some months ago so we don’t necessarily attribute one month’s success to recent rains, we do however see the impact rain has on confidence and thus, farmers proceeding with deliveries.
The other major states of NSW and Victoria were both down slightly but remain up on last year. Once again, the absence of rain has dampened expectations a little, however, at the time of writing, the heavens have opened which we hope will redress this.
Elsewhere in the nation, South Australia reported a huge bounce, up 56% on last month and 12% up on last year. Business was also strong in Tasmania, up 32% and now up 14% year to date. We attribute both of these results to a bump in deliveries for the month which is expected to smooth out over the coming months.
Sales of Harvesters are still yet to get going (55 units against 37 units last year) however, dealers are generally predicting a slower year this year as the impact of a lower 2017 crop combined with some new models slowly hitting the market are likely to impact.
Baler sales jumped again, we’ve now sold 69 units this year compared to 49 last year as the market slowly recovers from what was an “off” year last year.
The sale of Out Front Mowers were again strong and are now up 2% on the same time last year.
Looking ahead, as stated earlier, there is cautious optimism in the market that we will have another solid year for Agricultural Equipment Sales.
Challenges include the uncertain weather outlook, generally subdued commodity prices and threats of interest rate rises. Supply of equipment will also be tight as demand in the US and Europe for agricultural product continues to grow.
TMA Conference 2018
Finally, the TMA is holding its annual conference this year in Sydney on July 17th at the Novotel Brighton Le Sands and registrations are now open.
We have another exciting lineup of speakers and one or two surprises in store that will make this a not to be missed event.
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