Slow start to tractor sales but dealers urged not to place ‘too much emphasis’ on first 2025 figures

Extreme weather and economic headwinds are dragging down national tractor sales, but machinery dealers have been urged not to place “too much emphasis” on the first monthly figures released this calendar year. About 550 units, or tractors, were sold around the country in January, about 15 per cent behind the same month last year, according to the latest figures released by the Tractor and Machinery Association of Australia. But the group’s leader, executive director Gary Northover, said it was not all doom and gloom, with the downturn expected to flatline and coming on the back of “unusually high sales” post COVID-19. “Dealers have been reporting that order enquiry has been solid,” he said. “But with extreme weather conditions being felt in various parts of the country, it is perhaps no surprise that deliveries were down. “Expectations of a flattening out of sales remain as we try and not place too much emphasis on one month’s numbers.” Mr Northover said the machinery industry had emerged from two years of “unusually high sales” and “wild fluctuation” during and post the COVID-19 pandemic, when farmers were bolstered by government incentives. While sales have slowed down during the last two years, Mr Northover said farmers were branching out in terms of their tractor brand choices — with nearly 700 make and model combinations reportedly sold during the 2024 calendar year. WA was the second-hardest hit by the downturn, with sales down 25 per cent compared to January last year, just behind Victoria at 35 per cent. New South Wales was down 10 per cent, and South Australia 16 per cent. Sales in Tasmania were up 25 per cent, while Queensland experienced a small increase of 3 per cent. Small tractors under 40 horsepower proved popular in January, with sales up 11 per cent nationally, while sales in other categories fell. The biggest decrease in sales was for those of 200hp and more, which were down 42 per cent, while 100 to 200hp tractor sales were down 33 per cent and 40 to 100hp down 2 per cent. It wasn’t just tractor sales that took a hit in January, with combine harvester sales also down 35 per cent compared to January last year after just 700 headers were sold in all of the 2024 calendar year. About 11,000 tractors were sold last year, down 23 per cent compared to 2023. Baler sales were also well down in the month, sitting 57 per cent behind for the year, while sales of out-front mowers were also down 30 per cent compared to the same month last year. The Australian sales figures come as green machine juggernaut Deere & Company’s quarterly revenue slumped 35 per cent and missed analysts expectations in the first quarter of the year, with American farmers retaining ageing equipment. Deere’s profits were slashed to $869 million for the period as efforts to cut production and reduce the company’s dealer inventories continued. CNH Industrial expects sales to be lower year-over-year in both agriculture and industrial in 2025.