The new Financial Year has seen a continuation of the outstanding growth in tractor sales across the country with July recording a 19% increase on the same month last year. Activity is showing no signs of abating as the Federal Government’s temporary Full Expensing Program replaces the Instant Asset Write Off program giving buyers the ability to write the entire value of their purchase off against this year’s profit compared to the $150k limit in place to this point. This has clearly appealed to buyers with renowned interest in the larger categories of machine now becoming apparent.
Against this backdrop, reports from across the country are indicating an outstanding season ahead with abundant rain falling in most regions. A more detailed look at the numbers reveals that all states have reported increases on the previous July with NSW leading the pack up 28% as the restocking of business in that state continues. Victoria was up 11% and Queensland enjoyed a 16% rise for the month.
Sales in Western Australia rose 8%, South Australia reported a 25% increase for the month and Tasmania finished 19% ahead. Sales into the Northern Territory enjoyed an 11% rise.
All performance reporting categories enjoyed strong rises for the year with the exception of the under 40 hp (30kw) range down 17% in July due largely to stock shortages.
The 40 to 100hp (30-75kw) range was again up strongly 20% in the month, the 100 to 200hp (75-150kw) category was up 36%. The large 200 hp (150kw) PLUS range had another strong rise up 138% on what was a very quiet July last year. This category has been steadily rising as the market prepares for another bumper harvest season and buyers take advantage of the Temporary Full Expensing program to advance their fleet replacement programs.
Sales of Combine Harvesters have been staging a steady recovery over the past year and dealers are reporting strong demand which should be realised over the coming months leading to harvest. Forecasts are for a return to the 800+ unit sales levels not seen for a year or two.
Baler sales were solid in July up 27% and sales of Out – Front Mowers have started the year strongly recording an 11% rise.
As we have been highlighting for some months now the industry is coping with a range of extremes on the supply side at present. Machine deliveries continue to be pushed out, particularly in the smaller ranges and price rises for raw materials are beginning to impact the finished product. New challenges continue to merge with items ranging from computer chips to tyres now having an impact.
During the month the TMA participated in the Productivity Commission review on Right to Repair and released a Statement of Principles supporting farmers’ ability to repair their own machines. This Statement of Principles, which can be found on the TMA website (www.tma.asn.au) clearly sets out this support whilst drawing the distinction between Right to Repair and Right to Modify and we look forward to working with all parties to achieve a successful outcome.
Lastly the TMA has rescheduled its Annual Conference, to be held once again this year in Melbourne at the Hyatt Place Melbourne, Essendon Fields, on Tuesday September 14th. We remain hopeful that lockdowns will have eased at this point and that we can proceed with the event. The link to book for the Conference is on the TMA website.