Machinery dealers prepare for slump in tractor sales in 2024 as ‘pessimistic mood’ emerges among farmers

The agricultural machinery sales sector is bracing for further falls in demand next year as a “pessimistic mood” settles over farmers causing a 23 per cent drop in sales, year to date, compared with 2022.

The Tractor and Machinery Association of Australia reported that September sales continued to decline for agricultural tractors across the country with about 1000 units being sold in the month compared to about 1500 units in the same month last year.

“This now means that on a year-to-date basis, the industry is down 23 per cent on last year,” TMA executive director Gary Northover said.

“It is now quite evident that the industry is headed for a subdued period as a result of a number of factors, including the recently declared El Nino for eastern Australia.

“While spring rains have been helpful, and their remains the prospect of a reasonable harvest season, a more pessimistic mood is now being seen among farmers leading to declines in demand for new machinery.”

The new machinery sector has come off two years of sales that were 50 per cent ahead of what was normally considered a good year of 12,000 tractors.

September sales figures reveal that all states experienced significant drops in the month across all tractor category types.

WA had a 28 per cent drop in sales, which means the State remained 22 per cent behind 2022.

The biggest falls for the month were felt in Queensland, down 46 per cent, NSW down 43 per cent and South Australia down 40 per cent.

Victoria was off 29 per cent, while Tasmania was down by 2 per cent, with sales in the Northern Territory bucking the trend and finishing 100 per cent up but still 13 per cent behind 2022 figures.

Mr Northover said despite the downward trend in tractor sales, combine harvesters experienced a lift in September with about 500 units delivered in the year so far, which was 22 per cent up on the same time last year.

“With reports of a strong winter harvest and expectations of a healthy summer crop, we appear to be in for another outstanding year ahead for combines,” Mr Northover said.

He said baler sales also enjoyed another healthy rise and were 13 per cent ahead on a year-to-date basis, while sales of Out Front Mowers remain in line with the same time last year.