Tractor sales soared by 24pc in bumper 2020 sales result

New tractor sales enjoy a year to remember in 2020

On Farm
TRACTOR SALES BOOM: Sales of both new and used farm tractors boomed during 2020 on the back of widespread rain, a record harvest and federal government tax incentives.

TRACTOR SALES BOOM: Sales of both new and used farm tractors boomed during 2020 on the back of widespread rain, a record harvest and federal government tax incentives.

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Last year saw sales of new tractors soar back up to levels not seen since the 1980s.

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New tractor sales last year soared well past the 13,000 mark to levels not seen since the 1980s.

Sales have rocketed up in response to the breaking of the drought in many regions along with the federal government's instant tax write-off incentives to encourage businesses to buy new and second-hand plant and equipment.

The Tractor and Machinery Association of Australia (TMA) was extremely gloomy about the outlook for tractor sales at the start of 2020, predicting purchases would be around 9000 to 10,000 units.

But then the rains arrived and tractors and other farm machinery started rapidly disappearing out of dealers' yards despite the impact of COVID-19 on the economy and supply of equipment from overseas factories.

In his wrap up of sales results for 2020, TMA executive director Gary Northover said national tractor purchases in 2020 were up a whopping 24 per cent on the previous year.

"Much has been said about the level of optimism in the farm sector with a great winter grains harvest now largely completed supported by the instant asset write-off scheme which has now been extended to June 2022," Mr Northover said.

"Concerns surrounding (machinery) supply from overseas are generally being dealt with as dealers work to deliver on customers requirements.

"The year has seen a continuation of recent trends as demand for bigger horsepower machines increased along with demand for low-emissions engines.

"The used equipment market, supported by the instant asset write-off scheme, has been strong and finance rates continue to be set at extremely attractive levels," he said.

HAPPY TIMES: Tractor and Machinery Association executive director, Gary Northover, says the outlook for farm machinery sales in 2021 is looking buoyant.

HAPPY TIMES: Tractor and Machinery Association executive director, Gary Northover, says the outlook for farm machinery sales in 2021 is looking buoyant.

"(Tractor buying) activity in December was strong in most states with NSW again the standout, up 66pc on the same month last year and now sitting 40pc ahead for the year.

"Victoria reported a solid lift, up 17pc in the month to finish 22pc ahead for the year while Queensland was up 31pc to be 18pc up for the year."

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Mr Northover said sales in Western Australia sales picked up 7pc in December and finished in line with last year while sales in both South Australia and Tasmania lifted 27pc for the whole year.

"The under 40 horsepower (30 kilowatt) range was up 72pc for the month and ended 36pc ahead for the whole year. The 40 to 100hp (30-75kW) range was again up strongly by 16pc for the month and 27pc for the year," he said.

"The 100 to 200hp (75-150kW) category was again up by 28pc for December and ended the year 26pc higher while sales in the large 200 hp (150kW) plus range dipped by 8pc.

"The much talked about supply challenges have been felt across all size categories and for the first time in a long while, dealers have been forced to move stock around among themselves to satisfy orders.

"Pleasingly, most dealerships are now returning to full staffing levels which will assist in meeting the challenges ahead.

"Sales of combine harvesters experienced a late-year flourish in support of one of the best harvests in recent memory and finished the year 25pc ahead of 2019.

"Baler sales continued their boom run, up 35pc for the year, while sales of out-front mowers are flying, and are now 40pc ahead of the same time last year.

"As we look forward to 2021, most suppliers are predicting a continuation of the strong levels of demand underpinned by both the ongoing favourable weather conditions and the instant asset write-off scheme.

"We do, however, expect to see some unevenness in supply as the main manufacturing centres in North America and Europe continue to struggle with the impacts of the coronavirus.

"This may lead to some 'lumpiness' in sales reporting, however, we expect next year to be another strong one," Mr Northover said.

The story Tractor sales soared by 24pc in bumper 2020 sales result first appeared on Farm Online.

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