Farmers spent $2.338 billion on new machinery last year despite crippling and widespread drought.
The result, which included $1.272 billion on new tractors, was only 5.6 per cent down on 2018's $2.476 billion.
Tractor sales have now passed the $1 billion mark for the eighth year in a row.
While the value of last year's sales was 4.8pc below 2018, the result was 7pc up on average sales between 2014 and 2018 of $1.191 billion.
A total 11,037 new tractors were sold last year but this segment of the machinery market is being boosted by sales to lifestyle or hobby farmers.
The lifestyle market accounted for 34pc of total tractor sales (3779 units) worth $98 million, down 9pc.
The bulk of lifestyle tractor sales were concentrated in the 14.9 to 29.8kW (20-40 horsepower) range which accounted for 63pc of the under 44.7kW (60hp) segment with 2387 sold compared with 2647 units in 2018.
Lifestyle farmers are also slowly increasing the horsepower of their tractors, with the average rising from 23.8kW in 2004 to 27.5kW in 2019.
Victoria headed the tractor sales list with 3022 units followed by NSW (2802), Queensland (2523), Western Australia (1174), South Australia (928), Tasmania (a record 470) and the Northern Territory (118).
The figures are contained in the Tractor and Machinery Association of Australia's just-released State of the Industry report for 2019 which was prepared by Agriview Pty Ltd.
Last year's poor grain harvest across much of eastern Australia contributed to a 20pc slide in combine harvester sales to $352 million.
Demand for large-capacity, high-horsepower headers continued to dominate the market at the expense of smaller machines.
Class 6 harvesters (up to 242kW) recorded only seven sales and their days might be numbered on the Australian market.
Sales of Class 7 machines (242-298kW) also continued to slide and accounted for just 13pc of sales in 2019.
Class 8 harvesters (298-354kW) captured 38pc of the market which was a slight rise on 2018 but well below the 44pc share it had in 2016.
The rise in sales of Class 9 machines (354-plus kW) continued. Their market share has grown from 32pc in 2015 to 48pc last year.
Class 8 and 9 machines had a dominant 85.7pc share of sales in 2019 compared with 74pc in 2015.
WA farmers bought 249 harvesters followed by Victoria (100), SA (92), NSW (70) and Queensland (23).
A star performer in 2019 was the hay and forage equipment segment with sales of $242.8 million, up 15 per cent on the previous year.
Baler sales reached 954 units in 2019, 14pc up on the previous year. Sales of large square balers were a record 276 units with strong demand among drought-hit broadacre farmers who cut their failed crops for fodder.
Victoria easily headed the field with sales of 351 balers followed by NSW (199), Qld (158), WA (105), SA (104) and Tasmania (31).
Sales of self-propelled windrowers rose 8pc in 2019 to $27.5 million while the self-propelled sprayer market was sluggish with sales of $234.4 million compared with $275 million the previous year.
The seeding and tillage equipment market in 2019 was estimated at $236 million.