Tractor sales up 38 per cent in November

Tractor sales are on track to reach well above the 13,000-units sold mark after a big increase in sales during November. Here’s why.

Tractor sales were up 38 per cent in November.

TRACTOR sales continue to boom as November registered a 38 per cent increase in ag machinery sales compared to the same time last year.

Sales are now up 23 per cent for the year to date and is on course to deliver sales well above the 13,000-unit mark.

“Optimism in the agricultural sector is extremely buoyant at present with a great harvest underway across the nation supported by the instant asset write-off scheme,” said Gary Northover, the executive director of the Tractor Machinery Association of Australia.

NSW was the standout with sales up 84 per cent on the same time last year, to be 37 per cent ahead for the year.

Victoria reported a 13 per cent increase for November, and remains 23 per cent ahead year-to-date, meanwhile Queensland was up 55 per cent to be 16 per cent up for the year.

“The monthly picture in all states is tending to fluctuate a little more than usual as dealers try to cope with social distancing challenges, stock supply challenges and the very hectic nature of the market,” Mr Northover said.

“The increase in sales numbers is again due almost entirely to the ongoing strength in the smaller end of the market supported by the instant asset write-off scheme.”

The under-40hp range was up 67 per cent for the month and now sits 32 per cent ahead for the year-to-date.

The 40 to 100hp (30-75kw) range was again up strongly 76 per cent to be 28 per cent ahead for the year.

“It has unquestionably been a standout year and we are mindful of the number of important influences that have shaped this and will impact the year ahead,” Mr Northover said.

“Along with the outstanding weather conditions and the IAWO scheme, the issue of stock supply has been a key focus of recent months.

“There is hope that the worst may not happen here and that factories are adjusting to their new normal.

“Where early predictions were of a 12 to 16-week delay on deliveries, some suppliers are seeing this improve with a figure of four to eight weeks delay anticipated.”

“Manufacturers are having to deal with not only the impacts of coronavirus on their workforce, but also the impact on component manufacturers, an increasing steel price and an increasing shipping cost, all of which will undoubtedly impact machine prices at some stage.”

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