The spending spree on new tractors is continuing across the country despite supply challenges holding up delivery.
- In Australia 15,700 new tractors have been sold, that’s up 37pc on the 12 months prior
- Tractor sales in NSW are up 78pc for the year to date
- Farmers are also spending big on storage to keep mice out
In the last year more than 15,700 tractors were sold, 37 per cent more than in the previous 12 months.
Tractor and Machinery Association of Australia (TMA) executive director Gary Northover said he was not expecting the trend to continue.
“Tractor sales have still been booming and we have been quite surprised by the strength of the market,” Mr Northover said.
In its latest report, the TMA found NSW was still leading the way, with tractor sales for the year to date up 78 per cent and up 30 per cent on the same month last year.
Tax break pushing things along
Mr Northover said drought breaking rain and a record harvest in 2020 bolstered spending, as did the Federal Government’s Instant Asset Write Off Scheme which was slated to end later this month, but was replaced with the Temporary Full Expensing program for two more years.
“With that being extended for another couple of there years there shouldn’t be any panic for buyers to go and take advantage of that now,” he said.
Mr Northover said supply issues remained a challenge for dealers and they could not always meet customer demands.
He said the delays were due to a combination of factors including a worldwide demand on factories for new tractors, particularly in the United States and Europe.
Supply issues and price increases for raw materials such as steel and tires, shipping delays were also contributing factors.
Not just tractors
It was not just new tractors leading farmers to dip into their pockets.
Ashley Webster from Geronimo Farm Equipment at Cowra said he was busy with farmers investing in grain storage to keep mice away.
He said some of his clients had lost 50 percent of their grain to mice.
“We’ve got three crews flat out building silos and a lot of guys delivering augers.”
The machinery dealer said things were “desperate” during the drought and it was good to see farmer confidence turn around.
“We had to hang in there and look after our clients [during the drought] and they’re paying us back ten-fold at the moment,” Mr Webster said.
Out with the old, in with the new
Walgett farmer Ed Colless decided to spend up big this year on gas sealed on-farm storage for wheat and chickpeas.
“Initially, I wanted to be able to hold on to my wheat and chickpeas and wait for the best marketing opportunity and make sure they are safe from insects,” Mr Colless said.
“But this year, luckily, the new storage also kept out the mice.”
He said the tax write-off, low interest rates and NSW Government’s Farm Innovation Fund all helped him make on-farm upgrades.
Mr Colless said farmers were spending up big, but it is not just because of a good harvest.
“There was no choice, it had to be replaced.”
‘We’re getting hammered’
Tractors, fertiliser spreaders and seeders were at the top of the list for farmers buying up in the New England North West.
Machinery salesman Jordan Ganci at Double R Equipment in Tamworth had never seen demand surge like it and said securing supply of stock had been difficult.
“At the moment we’re getting hammered.”
Big money at field days
Exhibitors at the recent Primex field days at Casino in northern New South Wales reported in excess of $50 million in sales across the three-day event.
One supplier, Ongmac Trading at Lismore, reported tractor sales increased by 112 per cent in the last year.
“Securing stock is now an issue because of the upbeat sales,” said Ongmac Trading sales consultant Brendan Disson said.
He said the sales surge was good news for his region.
The dealership sold 15 tractors in just three days at the Primex event in May.
“It’s the best show we’ve been at since a long time,” he said.