APRIL tractor sales were down 31 per cent year on year according to Tractor and Machinery Association (TMA) data.
TMA executive director Gary Northover said farmers were feeling the impact of higher interest rates, which, together with limited stock availability and a hike in equipment prices, he nominated as the major drivers of the decline in farm machinery sales.
"On a year-to-date basis we have now seen around 4,500 tractors sold which translates to an annual figure of around 13,500 units compared with figures around the 18,000 unit mark for the past two years," he said.
However, he said while there had been a drop in volumes of sales, this has not translated into value.
"In dollar terms, the number is considerably different, down only 3.2 per cent on the same time last year, a reflection of the mix of sales occurring in the market."
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Looking forward, Mr Northover said the waning trend was likely to continue, albeit with a short-term spike possible towards the end of the financial year when the government's temporary full expensing business taxation incentive comes to an end.
"We expect full year's sales figure of around the 12,000 to 13,000 unit mark."
Victoria has seen the most dramatic falls, down a whopping 49pc on the same month last year to be 33pc behind year to date. Queensland was down 23pc for the month and is now 15pc behind year to date and NSW was down 26pc to be 25pc off year to date. There was a similar dip in sales in Western Australia with a month on month drop of 27pc however strong sales of high horsepower tractors may mean there is less of a drop in value as the state's total sales remained 15pc behind last year.
South Australia fell 15pc drop month on month and now sits 11pc behind its year to date figures, Tasmania was off 22pc for the month, 17pc down for the YTD with sales in the NT finishing 10pc down but bucking the national trend and remaining 23pc up YTD.
Mr Northover said the major falls were in the small tractor, less than 40hp, categories, which he said were the most likely to be impacted by interest rate rises.
In the 200hp and above categories there was an increase in sales of 14pc but this still remains 17pc behind last year. The small tractor sector was down by a massive 51pc for the month and is now 17pc behind year to date.
The 40 to 100hp sector was also well down, 29pc in the month and is now 22pc behind year to date, the 100 to 200hp (75-150 kw) category was down, this time by 37pc and remains 28pc behind YTD.
In terms of other machinery he said sales of Combine Harvesters have virtually now come to an end for this time of the year however, dealers are reporting a healthy forward order intake which bodes well for another strong season.
Baler sales enjoyed a jump in April, up 40pc on the same time last year and are now up 5pc on last year whilst and sales of Out - Front Mowers continued their downward trend, off by 6pc for the month.