The spending spree on new tractors is continuing across the country despite supply challenges holding up delivery.

Key points:

  • 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.

Two tractors side by side

Farmers are upgrading their tractors on the back of drought breaking rain, good harvests and with the help of tax incentives. (

ABC Open contributor dust_n_diesel

)

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.”

A man leaning on a rock picker

Farm supply shop manager Ashley Webster says lots of farmers are building grain silos to prevent mice eating grain.(

ABC News: Hugh Hogan

)

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.”

A grain silo in a paddock.

Farmers are upgrading their on-farm grain storage. (

ABC Esperance: Emma Field

)

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.

A man in brown jacket and blue cap stands in front of a blue tractor.

Tamworth machinery salesman Jordan Ganci hasn’t seen demand for farm machinery this high.(

ABC Rural: Lara Webster

)

“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.

Two men sit on a hay bale with a red tractor in the background.

Primex is reporting exhibitors sold in excess of $50m across the three day event.(

Supplied: Primex

)

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.

Machinery dealers ‘amazed’ by record demand
Source:
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