Sales of agricultural tractors have begun to show signs of steadying across the nation and whilst down on the recent record run, continue to represent a reasonably healthy level of activity, according to the Tractor and Machinery Association (TMA).
This of course does exclude those drought affected regions of NSW, northern Victoria and southern Queensland.
"Sales for the month were down 13 percent against the same month last year and are now down that amount on a year to date basis," TMA, executive director, Gary Northover said.
"As a result, a forecast sales level of around 10,500 tractors is anticipated this year, down from the 12,500 unit levels of the past few years.
"The NSW market continues to struggle with March sales down 20% on last year, now 25% behind for the year.
"VIC sales were again down, this time 16% for the month, 11% year to date and QLD saw another dip, this time 10% for the month leaving that state 6% behind for the year.
"Elsewhere, WA had a booming month, sales up 23% for the month now sitting 6% ahead of last year.
"We saw slight improvement in the large over 200hp range in the month."
The TMA figures for 2018 showed tractor sales were, unsurprisingly back a further 4.1 per cent on the previous year.
Mr Northover said 2018 had been challenging for suppliers dealers, particularly in the eastern states.
"There are numerous factors driving the sales results but most believe the drought, combined with many farmers taking a more conservative stance with regards to purchasing have had the greatest effect," he said.
"After five continuous years of growth, 2018 has seen machine sales take a breather and we expect this trend to continue in 2019."
Mr Northover said while he expected the drought to continue to effect sales, there were also broader trends involved.
"Farmers are expected to view purchases a little more conservatively in the period ahead," he said.
"Not unlike investors in other fields of the broader economy, the tightening of lending by the banks and reductions in the exchange rate, whilst good for commodity exports, will also impact."
Mr Northover said nationally, 12,158 tractors were sold last year with the best performing category of the year being the 75 to 150kW (100 to 200hp) segment.
- Visit: www.tma.asn.au.
