Tractor sales defy predictions and go back to the ‘80s

Tractor sales in 2020 have topped levels not seen in Australia since the 1980s. And there are predictions of another strong year ahead. Find out why here.

Sales of combine harvesters were up 25 per cent last year.

DESPITE a year of unprecedented disruption, tractor sales have topped levels not seen in Australia since the 1980s with predictions of another strong year ahead.

Having began 2020 with predictions of a continued slump in sales, the Tractor Machinery Association of Australia has reported agricultural equipment sales of more than 13,000 units.

“Sales for 2020 finished well above the 13,000-unit mark with December 27 per cent above the same month in 2019, and the 12-month period up 24 per cent on year-to-date,” said the TMA’s executive director Gary Northover.

“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.”

Mr Northover said the used equipment market has been strong and finance rates continue to be set at “extremely attractive levels”.

NSW was again the standout, to be up 66 per cent on the same time the previous year, and now sitting 40 per cent ahead for the year-to-date.

Victoria reported a solid lift, up 17 per cent in the month, to finish 22 per cent ahead year-to-date, while Queensland was up 31 per cent to be 18 per cent up for the year.

Western Australia sales picked up 7 per cent in December and is now in line with last year while sales in South Australia were steady ending 27 per cent up, and Tasmania finished the year 27 per cent ahead.

Mr Northover said the increase in sales is again due almost entirely to the ongoing strength in the smaller end of the market supported by the IAWO scheme.

“The under-40hp range was up 72 per cent for the month and ended 36 per cent ahead for the year-to-date,” Mr Northover said.

“The 40hp to 100hp range was again up strongly – 16 per cent in the month – to be 27 per cent ahead for the year.”

Sales of combine harvesters experienced a late-year flourish on the back of one of the best harvests in recent years to finish the year 25 per cent ahead of 2019.

“Baler sales continued their boom run, which is now about three years old, remaining up 35 per cent year-to-date while sales of out-front mowers are flying, now 40 per cent ahead of the same time the previous year,” Mr Northover said.

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