Tractor sales up 24 per cent in July on back of instant asset write-off scheme

The Government’s instant asset write-off scheme continues to drive tractor sales, with smaller machinery leading the way.

Sales spike: Smaller tractors have drive a 24 per cent increase in sales for July.

THE Federal Government’s instant asset write-off scheme continues to drive tractor sales, with smaller machinery leading the way.

Following on from the record June result, which was the best month in 20 years at 48 per cent up year-on-year, July tractor sales were up 24 per cent compared to the same month last year.

Driven by the lower horsepower segment overall tractor sales were 21 per cent ahead for year-to-date.

“The increase in sales numbers is due almost entirely to the ongoing strength in the smaller end of the market supported by the IAWO scheme,” Tractor and Machinery Association of Australia executive director Gary Northover said.

Victoria reported another strong month, up 34 per cent and now 30 per cent ahead year-to-date.

Activity across the states was varied, with drought-affected NSW the standout to be up a 60 per cent on the same time last year, and now 26 per cent ahead for the year.

The under-40hp (30kw) range was up 48 per cent for the month and now sits 20 per cent ahead for the year to date.

The 40hp to 100hp (30-75kw) range was again up strongly 29 per cent now 21 per cent ahead for the year.

Demand for large tractors is still being hit by drought in northern NSW and southern Queensland to be down 7 per cent.

Mr Northover said the machinery industry’s ability to continue to deliver strong sales will be determined by the supply of product from international suppliers.

“Early signs are that the demands of the market are largely being met,” Mr Northover said

Further complicating this are the Stage 4 coronavirus restrictions in Melbourne, which is a key machinery supplier.

Mr Northover said while agricultural suppliers will continue operating, these restrictions will inevitably have an affect on their operations.

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