Tractor sales top 2000 in June as buyers cash in on instant asset write-off incentive

June’s tractor sales saw a massive increase on previous months as buyers took advantage of the government’s instant asset write-off incentive increase.

MORE than 2000 tractors were sold last month as buyers rushed to cash in on the government’s increase of the instant asset write-off incentive to $150,000.

June’s figures were a whopping 48 per cent ahead of the same month last year, which itself was considered a strong result, and brings sales for the year to date up by 21 per cent.

“The instant asset write-off incentive has contributed to a perfect storm for tractor sales as the weather conditions have supported the strong demand for locally produced food arising out of the coronavirus pandemic,” said Tractor and Machinery Association of Australia executive director Gary Northover.

All the states reported increases with Victoria’s sales up by 46 per cent for the month, to be 30 per cent ahead of the same time last year.

South Australia was up a massive 81 per cent up for the month and now 32 per cent up year-to-date.

The only size category not to benefit from the flurry is the large 200hp (150kw) range that reported a drop of 7 per cent.

The 100hp to 200hp (75-150kw) category had another strong month, to be up 66 per cent for June and 40 per cent for the year-to-date.

“The strength in the horticultural space is having a big impact on demand for this range, strongly supported by the financial incentives in place,” Mr Northover said.

The under-40hp (30kw) range, was up 50 per cent for the month and now sits 16 per cent ahead for the year-to-date.

The 40hp to 100hp (30-75kw) range was again up strongly (48 per cent) and now 20 per cent ahead for the year.

Mr Northover said there are concerns over inventory levels for the rest of the year as dealers anticipate demand to remain strong, particularly after the extension of the IAWO to December.

“Supply of machines from places such as the US and Europe are beginning to resume after periods of factory closures and reductions in production due to the imposition of social distancing protocols,” Mr Northover said.

“Product coming out of places like Japan, however, remain largely on schedule as these locations were less impacted.

“What this means for purchasers is likely to be a little less in terms of flexibility and choice, however, you will still be able to buy a tractor.”

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