New tractor sales for the 2020 calendar year soared well past the 13,000 mark, to a level not seen since the 1980’s.

Despite the gloomy outlook that The Tractor and Machinery Association of Australia (TMA) predicted at the beginning of the year, sales have skyrocketed in response to the breaking of the drought in many regions, along with the federal government’s tax write-off incentives.

In his market wrap of the 2020 sales results, TMA Executive Director Gary Northover said that tractor purchases for the year were up an incredible 24 per cent compared to 2019.

“Much has been said about the level of optimism in the farm sector with a great winter grains harvest now largely completed supported by the instant asset write-off scheme which has now been extended to June 2022,” Mr Northover stated.

Mr Northover continues, suggesting that the used equipment market, supported by government incentives “has been strong and finance rates continue to be set at extremely attractive levels.”

Tractor purchases were strong across most states in December, with New South Wales again at the standout, up 66 per cent for the month and sitting 40 per cent ahead for the year.

Victoria also reported a steady increase, demonstrating a 17 per cent rise for December and 22 per cent for 2020.

Sales in Queensland picked up by 31 per cent for December, resulting in an 18 per cent increase for the year.

Western Australia was up 7 per cent for the month and finished in line with 2019 results.

Both South Australia and Tasmania observed a 27 per cent lift for the year.

“The much talked about supply challenges have been felt across all size categories and for the first time in a long time, dealers have been forced to move stock around among themselves to satisfy orders.” Mr Northover added. “Pleasingly, most dealerships are now returning to full staffing levels which will assist in meeting the challenges ahead.”

Breaking the sales down by category, the under 40 horsepower range experienced a 36 per cent increase for the year.

The 40 to 100 horsepower range was up 27 per cent for the year.

The 100 to 200 horsepower range ended up 26 per cent higher, while sales in the large 200 horsepower plus range dipped again, leaving this category at 8 per cent for the year.

Mr Northover expects the next year to be a strong one, stating “As we look forward to 2021, most suppliers are predicting a continuation of the strong levels of demand underpinned by both the ongoing favourable weather conditions and the instant asset write-off scheme.”

Source: TMA | Tractor Sales shine brightly in 2020

18 January 2021