Surprising header sales lift offers hope in otherwise sluggish machinery sector
A surprising surge in million-dollar header sales has emerged amid Australia’s machinery market slump, as farmers chase efficiency gains despite the cost.
Sales of headers have finally turned a corner, with combine harvester deliveries rising 3 per cent after more than a year of sluggish results across the machinery market.
Tractor and Machinery Association of Australia figures show more than 250 combines were delivered nationally in October, giving dealers one of the strongest harvest lead-ins since before the downturn began in 2024.
Australian Custom Harvesters president Damien Talbot said a header outlay was possibly the most significant capital cost for farmers aside from the considerations of land value.
He said with an outlay of more than $1.2m for a new header, and then the associated insurance costs, the current industry sentiment was not matching what was being seen in the market.
However, he said the sales could be attributed to demand for larger machines with farmers upgrading to purchase a header that had more capacity.
Mr Talbot was currently harvesting wheat at Trangie and Narromine, NSW and said farmers were reporting yields of four tonnes a hectare to 5.5 tonnes.
The TMA figures showed the lift in headers was in stark contrast to the rest of the sector.
Tractor sales fell another 6 per cent in October compared with the same month last year, leaving year-to-date numbers 8 per cent down and extending a decline that has run throughout 2024–25.
Craig Henderson who farms in Millewa, Berriwillock and Wilkur said in Victoria he was expecting “an average sort of a year” from the current harvest results.
He was about halfway through harvest and hoped to be finished in two and a half weeks.
He attributed the header sales to the fact that farmers often found it increasingly difficult to get contractors.
The sales could also be due to the fact that farmers were upgrading.
“There are headers on the market now that are 50 per cent bigger and they have such a capacity that there are economies of scale,” he said.
However, Mr Henderson said the signficiant purchase price outlay of a header had to be considered along with the associated insurance costs.
Victorian Farmers Federation grains group president Ryan Milgate attributed the uptick in sales to logistics.
He said there was a lot swinging on the current season.
“We haven’t even really started harvest yet, and people are getting a bit concerned about what the summer might or might not bring,” he said.
“I think the purchase of a header is likely a logistics decision. Unless you get the crop harvested in time you could be leaving a lot in the paddock,” he said.
According to the Australian Bureau of Agricultural and Resource Economics and Sciences, Australia is set to harvest a larger winter grain crop this season, with total production forecast at 62.8 million tonnes, up 6.4 per cent on last year and 6.1 per cent above the five-year average.
