15 July, 2020
Tractor sales plough through an almost 40-year record
Tractor sales toppled the 2000 unit hurdle last month for the first time since 1981, owing mainly to the Federal Government’s instant asset write-off incentive. This represented a 48 percent increase on June last year, which had then been considered a strong result.
Tractor and Machinery Association of Australia (TMA) Executive Director Gary Northover said the instant asset write-off had contributed to a perfect storm for tractor sales.
"There can be no denying that the Government’s instant asset write-off program has stimulated a lot of sales" Mr Northover said.
"It contributed to the perfect storm, as the weather conditions have supported the strong demand for locally produced food arising out of the Covid-19 pandemic."
Mr Northover said dealers anticipated demand to remain strong.
"The question on everyone’s lips concerns inventory levels for the balance of the year, particularly in light of the extension of the instant asset write-off until December 2020."
The results of the TMA quarterly dealer business sentiment survey indicated the outlook expressed by dealers was wholly positive.
"Of interest was the question regarding plans for the workforce, with the majority of dealers stating they plan to continue to hold onto their workforce with a growing number looking to expand" Mr Northover said.