2016 has been another extremely good year for the tractor and machinery industry.
Tractor sales recorded their best result in over 30 years and the sixth consecutive year of a 10,000 plus market.
The last time we saw this happen was back in the early 1980s.
Sales in December were led by the small, under 40 horespower (29 kilowatt), range (up 17 per cent for the month) along with the 40 -100hp (29 - 73kW) range (up 14pc for the month).
Much of this activity occurred in Victoria and South Australia where a predominance of smaller hobby farmers was apparent. Victorian sales were in fact up a whopping 31pc on last month to finish the year slightly down on last year.
The larger end of the market above 200hp (147kW) took a breather in December, down 17pc on last month but still very much in positive territory, up 9pc on 2015.
The 100-200hp (73 - 147kW) range was again strong, in line with last month finishing the year up 7pc
Around the nation, NSW has reported the largest increase in sales up 14pc on 2015, with Queensland and Western Australia in line with last year.
Overall, the year has been dominated by the volume of large tractor sales which has led to an increase of around 8pc on last year in dollar terms.
Harvester sales continued to grow for the third year in a row.
It has been six years since the last boom in demand and combined with the record winter crops this year suggest that 2017 could very well be another very strong year for the sector.
Balers sales recorded their best result since 2011 capping off five years of continuous growth.
Round baler sales lifted by 15pc and large square balers by 11.5pc making 2016 a record year for large squares.
Out front mower sales continued to grow recording another record result.
What is interesting is that this segment over the last 10 years has averaged 22pc growth per annum and it is the zero turn products that provided all the growth in 2016.
We now turn our attention to the future outlook and whilst it might be considered brave to expect a repeat of the year we have just had, the indicators are that 2017 should once again be strong.
On a global basis, the market is still struggling, making Australia a destination of choice for most manufacturers and we should see this reflected in this year’s programs. When combined with the current low interest rate environment, the market should be attractive to buyers.
The weather forecast suggests we should see good conditions for growers again this year, and whilst prices remain a challenge, production levels are expected to remain strong.
Importantly, dealers and resellers are presently reporting a significant shortage of used equipment stock across the board so prices for those considering trading up, should be strong.
The TMA will once again be present at Farmworld at Lardner Park, Victoria, which this year celebrates its 50th anniversary so we encourage everyone to get along and support this important event.
Gary Northover is executive director of the Tractor & Machinery Association.