The Tractor and Machinery Association of Australia (TMA) reported a 36 per cent decline in July tractor sales, compared to July 2022, with only 750 deliveries for the month compared to approximately 1000 the previous year.
TMA said there is evidence some sales were brought forward in June to take advantage of the Temporary Full Expensing Program, but overall the year-to-date figure shows an 18 per cent drop in tractor sales compared to the end of July in 2022.
There was a significant decline in tractor sales across all states and territories, with TMA reporting sales for July were down 32 per cent in Victoria, 38 per cent in Queensland, 35 per cent in New South Wales, 49 per cent in Western Australia, 22 per cent in South Australia, 58 per cent in Tasmania and 9 per cent in Northern Territory, compared to July 2022. When comparing the year-to-date sales with 2022, Victoria was 25 per cent behind, with QLD 14 per cent, WA 18 per cent, SA 8 per cent, Tasmania 25 per cent and NT 9 per cent behind.
When considering the different categories, TMA found tractors under 40hp (30kW) were likely most impacted by rising interest rates, with sales down 45 per cent for July and 20 per cent behind this year to date, compared to 2022. The 40 to 100hp (30-75kW) range was also down 34 per cent in July (19 per cent behind for the year), while the 100 to 200hp (75-150 kW) category was down by 27 per cent for July and remains 21 behind for the year. Lastly, sales of the 200 hp (150kW) PLUS range dropped 44 per cent for July and remain 10 per cent behind last year.
While tractor sales are taking a hit, TMA reports Combine Harvester sales are well in front, with 350 units delivered so far this year, which is 75 per cent up on the same period last year. Baler sales are 12 per cent ahead on a year-to-date basis and Out-Front Mowers are up 45 per cent compared to the same period last year.
TMA said the machinery sales industry is experiencing significant headwinds with high machinery prices, recent interest rate rises impacting the cost of finance and drier outlooks for summer causing some farmers to reconsider their machinery purchases. However, the association remains optimistic of a "soft" landing as conditions continue to normalise following "what has been an amazing two-year period."
