Tractor and Machinery Association, executive director, Gary Northover said sales of agricultural tractors have continued to decline over the last month, in main due to continuing drought.
“All up, tractor sales in November were 15 per cent down for the month leaving the year to date position around 2pc behind last year,” he said.
”We have previously spoken of the influences that impact a tractor sale, in particular, the roles that improved technology and lower interest rates have had.
“Offsetting this to some degree is the renewed focus farmers appear to be applying to machine utilisation, particularly at the high end.
“It is perhaps not surprising that when conditions tighten up a bit, focus turns to capital utilisation and this is no different with Agricultural product.”
Mr Northover said as a longer term trend, farm rationalisation and efficiency gains were also a driver for reduced sales.
“When neighbouring farms combine there will always be the potential for greater sharing of assets,” he said.
Mr Northover said sales activity continued to vary around the nation.
“Drought affected eastern states has not surprisingly recorded declining sales figures in this last month.
“NSW the hardest hit, down 25pc for the month and 10pc for the full year, Queensland down 17pc for the month and 5pc for the year.”
Mr Northover said harvester sales had limped along, with dealers reporting an absence of new sales and are instead focusing on 2019 delivery.
“On a year to date basis we are now 23pc behind last year,” he said.
Mr Northover said unsurprisingly hay bailer sales were continuing to lift, with a huge 53pc increase in monthly sales.
“Clearly there has been a lot more hay cut this year in response to the prevailing conditions,” he said.