New tractor sales tipped to ‘bounce back’ in Australia, survey reveals

New tractor sales are expected to “pick up again soon” in Australia, a new survey has revealed, after market disruptions put the brakes on spending. Market research firm Kynetec was tasked by the Tractor and Machinery Association of Australia with surveying 184 farmers to better understand sentiment towards machinery purchases. Sixty-one per cent of respondents said their last tractor purchase was a new machine. Thirteen per cent of purchases were in the previous six months, 14 per cent were in the previous six to 12 months, and 30 per cent took place five or more years ago. A TMA spokesperson said tractor sales had slowed after disruptions to the market caused by COVID and related stimulus programs. “We are now experiencing a period of realignment back into a regular purchasing cycle which is also being influenced by higher interest rates, lower commodity prices and seasonal conditions conducive to lower production volumes,” they said. “The big question on everybody’s mind is when will purchases pick up again.” The survey results indicated “things will start moving again soon”. “If we just look at the responses from farmers whose last tractor purchase was a new machine, and keeping in mind the survey was conducted in mid-July, 11 per cent have stated they will be looking to make their next purchase in the next 12 months from July, and a further 18 per cent in the next one to two year period,” TMA said. Of those whose last tractor purchase was a new machine, 49 per cent of respondents said their current economic situation was “good to very good”. Forty-six per cent also felt their economic situation was growing over the next two-to-three years. “This all bodes well for machine sales to bounce back,” TMA said.