The spending spree on new tractors is continuous throughout the nation regardless of provide challenges holding up supply.
- In Australia 15,700 new tractors have been bought, that is up 37pc on the 12 months prior
- Tractor gross sales in NSW are up 78pc for the 12 months up to now
- Farmers are additionally spending massive on storage to maintain mice out
In the final 12 months greater than 15,700 tractors had been bought, 37 per cent greater than within the earlier 12 months.
Tractor and Machinery Association of Australia (TMA) government director Gary Northover mentioned he was not anticipating the pattern to proceed.
“Tractor sales have still been booming and we have been quite surprised by the strength of the market,” Mr Northover mentioned.
In its newest report, the TMA discovered NSW was nonetheless main the best way, with tractor gross sales for the 12 months up to now up 78 per cent and up 30 per cent on the identical month final 12 months.
Tax break pushing issues alongside
Mr Northover mentioned drought breaking rain and a record harvest in 2020 bolstered spending, as did the Federal Government’s Instant Asset Write Off Scheme which was slated to finish later this month, however was changed with the Temporary Full Expensing program for 2 extra years.
“With that being extended for another couple of there years there shouldn’t be any panic for buyers to go and take advantage of that now,” he mentioned.
Mr Northover mentioned provide points remained a problem for dealers and so they couldn’t all the time meet buyer calls for.
He mentioned the delays had been attributable to a mix of things together with a worldwide demand on factories for brand new tractors, significantly within the United States and Europe.
Supply points and value will increase for uncooked supplies reminiscent of metal and tires, transport delays had been additionally contributing components.
Not simply tractors
It was not simply new tractors main farmers to dip into their pockets.
Ashley Webster from Geronimo Farm Equipment at Cowra mentioned he was busy with farmers investing in grain storage to maintain mice away.
He mentioned a few of his shoppers had misplaced 50 % of their grain to mice.
“We’ve got three crews flat out building silos and a lot of guys delivering augers.”
The equipment supplier mentioned issues had been “desperate” through the drought and it was good to see farmer confidence flip round.
“We had to hang in there and look after our clients [during the drought] and they’re paying us back ten-fold at the moment,” Mr Webster mentioned.
Out with the outdated, in with the brand new
Walgett farmer Ed Colless determined to spend up massive this 12 months on gasoline sealed on-farm storage for wheat and chickpeas.
“Initially, I wanted to be able to hold on to my wheat and chickpeas and wait for the best marketing opportunity and make sure they are safe from insects,” Mr Colless mentioned.
“But this year, luckily, the new storage also kept out the mice.”
He mentioned the tax write-off, low rates of interest and NSW Government’s Farm Innovation Fund all helped him make on-farm upgrades.
Mr Colless mentioned farmers had been spending up massive, however it isn’t simply due to a very good harvest.
“There was no choice, it had to be replaced.”
‘We’re getting hammered’
Tractors, fertiliser spreaders and seeders had been on the high of the record for farmers shopping for up within the New England North West.
Machinery salesman Jordan Ganci at Double R Equipment in Tamworth had by no means seen demand surge prefer it and mentioned securing provide of inventory had been tough.
“At the moment we’re getting hammered.”
Big cash at area days
Exhibitors on the current Primex area days at Casino in northern New South Wales reported in extra of $50 million in gross sales throughout the three-day occasion.
One provider, Ongmac Trading at Lismore, reported tractor gross sales elevated by 112 per cent within the final 12 months.
“Securing stock is now an issue because of the upbeat sales,” mentioned Ongmac Trading gross sales advisor Brendan Disson mentioned.
He mentioned the gross sales surge was good news for his area.
The dealership bought 15 tractors in simply three days on the Primex occasion in May.
“It’s the best show we’ve been at since a long time,” he mentioned.
#Note:- Author Name:- Cara Jeffery, Lara Webster, Hugh Hogan, Kim Honan, and Michael Condon