TRACTOR sales have taken a tumble, while harvesting and haymaking equipment sales have posted some gains, according to July figures out from the Tractor and Machinery Association.
“The machinery sales industry is experiencing some significant headwinds at present,” TMA executive director Gary Northover said.
“Machinery prices are high and look to be remaining so, recent interest rate rises are impacting the cost of finance, and the expectations of a drier summer have caused some farmers to reconsider their machinery purchases.
“Despite this, we remain optimistic that we will see more of a soft landing as conditions continue to normalise after what has been an amazing two-year period.”
July TMA figures show a significant fall in tractor sales across the nation, which Mr Northover said evidenced some sales being brought forward into June to take advantage of the Australian Taxation Office’s Temporary Full Expensing Program.
“Normally a quiet month, there were only around 750 tractors delivered in July which was around 250 units or 36 percent fewer than the same month last year.
“This now means that the year-to-date figure is 18pc behind the same period last year.”
Sales around the nation were well down across the board as follows in comparison to July 2022, and year to date:
- Victoria down 32pc on month and 25pc ytd;
- Queensland down 38pc and 14pc ytd;
- New South Wales down 35pc and 19pc ytd;
- Western Australia down 49pc and 18pc ytd;
- South Australia down 22pc and 8pc ytd;
- Tasmania down 58pc and 25pc ytd;
- Northern Territory down 9pc and 9pc down ytd.
Looking at the machine categories, sales of tractors of under 30kw were most likely to be affected by interest rates, and fell 45pc against July 2022 to be 20pc behind ytd.
The 30-75kw range was down 34pc for the month, and is now 19pc behind ytd, the 75-150kw category was down 27pc month on month and is 21pc behind ytd, while the 150kw plus range is down 44pc on the month and 10pc behind ytd.
Harvester sales figures paint a brighter picture.
“Sales of combine harvesters continue to gather pace with more than 350 units delivered in the year so far.
“This puts us well ahead of the same time last year, up 75pc in fact and expectations are for an outstanding year ahead.”
Sales of haymaking equipment have also reported gains.
“Baler sales enjoyed a small rise and are now 12pc ahead on a year-to-date basis and sales of out-front mowers enjoyed another strong month, up 45pc on the same time last year.”