- Following the recent 2023 Tractor and Machinery Association of Australia annual conference, Melinda Haley shares key takeaways from her presentation on the Australian tractor, combine and baler industry
Australian farm machinery sales have been challenged by multiple factors in 2023, following a buoyant 2022. The largest factor is supply chain issues – with shipping quarantine queues being the prominent.
“Coming off a strong 2022 sales year, we correctly predicted a slowdown in tractor sales into 2023. It was well known that the record sales that were driven by the perfect storm of positive climate, commodity prices and the boosted instant tax write off scheme were not sustainable over the longer term.
We are now in a position of facing some head winds – namely higher land prices, average commodity prices and lower crop yields, coupled with high agricultural lending, increasing interest rate and the ending of the increased instant asset write off scheme. Land prices in the central wheatbelt are up between 165-168% in the last 5 years, interest rates have increased while grain prices have settled to 2020 levels. Certainly, these are challenging times when looked at in snapshot, but not unexpected.”
Sales of new tractors are down 15% and 17% respectively in the <60HP and +60HP categories, as predicted after the busy previous selling period. However, this was not unexpected, and in the 2022 review (please click here to read more) there is mention that dealers should look to a robust servicing schedule.
Baler sales are down 32% on the rolling 12 months, and combines up an impressive 78% YTD, with sales increases seen in all states other than NSW.
“Australian farmers are also experiencing slightly drier conditions than this time last year, with approximately 65% in average conditions or better, however a dry finish is expected.” she concluded.