WA tractor sales buck the national trend with strong demand continuing for high horsepower models

High horsepower tractors continue to be in hot demand in WA, bucking the trend of overall national tractor sales which recorded a 21 per cent decline from January to May, compared with last year.

Overall, tractors sales in WA reported a drop of just one per cent compared with the same time last year, due to “strong sales of high horsepower tractors”, according to Tractor and Machinery Association of Australia executive director Gary Northover.

Despite the positive result the WA market was sitting 12 per cent behind last year, which was a record year for new tractor sales at 1698 units, and valued at $343 million in the 2021-22 financial year.

Mr Northover said national sales of agricultural tractors have recorded another decline of 19 per cent for May, compared withthe same month last year.

“So far this year we have seen around 5400 tractors sold compared to around 6800, a drop of about 21 per cent,” Mr Northover said.

“Expectations of a June spurt, as buyers take advantage of the end to the Instant Asset Write Off scheme, are now low as the combined impact of higher interest rates, stock availability, machinery price rises, along with a general drop in demand is seeing sales reduce.

“The forward outlook is beginning to show signs of a greater than anticipated slowdown.”

Mr Northover said that while demand for agricultural products remained strong, a recent ABARES forecast highlighted the likelihood of an El Nino weather pattern occurring later this year, which has “already begun to impact the thinking of some farmers with a pullback in spending likely”.

“Despite this we foresee a reasonable realignment of the industry as the features and benefits of new tractors continues to meet the needs of customers,” he said.

The worst declines in sales were seen in Tasmania — off 48 per cent for the month and 26 per cent off year to date — followed by the Northern Territory which dropped 47 per cent in May, while still remaining 2 per cent up on last year.

Victoria was off 22 per cent compared with May last year to be 30 per cent behind year to date, while Queensland was down 19 per cent and is now 16 per cent behind year to date.

NSW was down 16 per cent to be 23 per cent off year to date, and South Australia recorded a 16 per cent drop and now sits 12 per cent behind.

Mr Northover said the 200hp (150kw) plus range, was still in demand in May, rising by 29 per cent, although remaining six per cent behind last year.

All categories of tractors from 40hp-200hp recorded a decline in sales by more than 20 per cent.

“Sales of combine harvesters have begun occurring in preparation for this year’s season with 27 units sold bringing the year-to-date figure to 123 units,” Mr Northover said.

“It would appear that another year of greater than 1000 units is likely.

“Baler sales enjoyed another jump in May, up 192 per cent on the same month last year and are now up 25 per cent on last year while and sales of Out - Front Mowers enjoyed a reversal of recent trends, up 14 per cent for the month.”