Tasmania bucks trend as tractor sales decline nationally

While tractor sales are declining nationwide, Tasmanian machinery dealers are faring slightly better than interstate sellers.

Statistics from the Tractor & Machinery Association of Australia show nationwide figures at their lowest level in about 15 years. Nationally, tractor sales were down 21 per cent in August compared to the same period last year and down 12 per cent this year to date.

So far this year, tractor sales in Tasmania are down 4.2 per cent. Tractor & Machinery Association of Australia president Gary Northover said the decline had been ongoing.

“There’s no doubt that farmers are feeling the crunch with fuel and fertiliser prices,” Mr Northover said.

“Buying a new tractor is probably not high on their list of priorities.”

Mr Northover said that combine harvester and sprayer sales were down too.

“We’ve got a lot of large fleet buyers out there now that have been buying machinery periodically on three- or five-year deals that are just deciding to roll over those arrangements, which means fewer machinery sales.”

However, data from the Tractor & Machinery Association of Australia showed that baler and shortline farm equipment sales had been rising.

But Mr Northover said core line products, tractor and combine harvester sales were suffering.

“We’ve been hoping and predicting that we’re at the bottom of the cycle for some time, but we continue to find a new level,” he said.

“Agriculture’s still healthy in this country, so there’s no reason why we won’t see a return to some stronger levels. 

“But I’m not sure on the timing.

“And while the war in Iran continues and food prices continue to be high, it’s probably going to stretch out even further.”

Jason Wilson from farm machinery business Landpower at Latrobe said sales were “plodding along”.

Mr Wilson said he was optimistic that farm machinery sales would improve.

“We’ve had a couple of lean years, but people are still doing bits and pieces, so I think there’s still going to be sales there,” Mr Wilson said.

“The last couple of years have been a bit down, but there’s still some sales there.

“Prices and availability have been a bit of a problem.” Mr Wilson said the Covid pandemic was still affecting sales.

“I think factories are getting back to full strength now, but that’s taken a while.

“It can be a bit unpredictable – some years you sell a heap of hay gear but some years you don’t.”

He also said that tractor sales were down but noted it had been a worldwide trend.

“We’ve got a wide variety of gear.

“If we were relying on just tractors, it would be a slow year for us.”

Mr Wilson said that the early 2020s had been bumper years for Landpower. 

Farmer consumer attitudes were also changing.

“People are geared up to replace equipment,” Mr Wilson said. 

“Farmers don’t just wear out their equipment and then replace it; they are working on a five to seven-year rotation schedule.

“A lot of that has to do with farms becoming more corporate in how they are run."