After another record-breaking November, new tractor sales are set to soar well past the 13,000 mark for the year.

Figures supplied by the Tractor and Machinery Association of Australia (TMA) show that tractor sales have increased by 38 per cent in the month of November compared to the same period last year and are now up 23 per cent year-to-date.

“[Tractor buying] activity in the month was strong in most states with NSW again the standout, up 84 per cent on the same month last year and is now sitting 37 per cent ahead for the year,” said Gary Northover, TMA Executive Director.

Sales in Victoria showed a 13 per cent increase in November, with a 23 per cent increase year-to-date.

Queensland’s figures experienced a 55 per cent increase in the month and 16 per cent up year-to-date.

Tractor sales in Western Australia picked up by 54 per cent in November and are now in line with sales last year.

For the first month is some time, South Australia’s figures have dipped for the month, however, are still 30 per cent higher year-to-date.

Tasmania’s sales remain strong, standing at 27 per cent up for the year.

“The monthly picture in all states is tending to fluctuate a little more than usual as dealers try to cope with social distancing challenges, stock supply challenges and the very hectic nature of the market,” Mr Northover added.

“The increase in sales numbers is again due almost entirely to the ongoing strength in the smaller end of the tractor market supported by the instant asset write-off scheme.”

Breaking the sales down by category, the under 40 horsepower (HP) range was up 67 per cent for the month, now sitting at 32 per cent ahead for the year.

The 40 to 100 HP range was up significantly with a 76 per cent increase in November, but only 28 per cent up year-to-date.

The 100 to 200 HP category remained in a steady position and remains up 26 per cent year-to-date.

The 200 HP range took a hit again, leaving the category 8 per cent behind year-to-date.

“The 200hp plus category has not enjoyed the same level of sales boost as the smaller ranges, however, off the back of this year’s outstanding harvest, there is considerable optimism that demand for big tractors will improve.

“Sales of combine harvesters are experiencing a late-year flourish, helped along by one of the best harvests in recent memory and are now 28pc ahead of last year.”

“Thanks to outstanding weather conditions and the federal governments instant asset white off scheme, 2020 has been a standout year for farm machinery sales,” Mr. Northover said. “However, the focus of rescent months have involved the issue of stock supply.”

“Where early predictions were of a 12-16-week delay on deliveries, some suppliers are seeing this improve with a figure of 4-8 weeks delay anticipated.”

“Manufacturers are having to deal with not only the impacts of COVID-19 on their workforce but also the impact on component manufacturers, an increasing steel price and an increasing shipping cost, all of which will undoubtedly impact on machine prices at some stage,” he said.

“There is hope that the worst may not happen here and that factories are adjusting to their new normal.

Source: Queensland Country Life | Rush to buy tractors continues with record November

14 December 2020