THE Federal Government’s stimulus package has helped drive tractor and combine harvester sales to unexpected levels.
Tractor sales roared in to stand at 11,500 units by 31st December '09 – a 12 per cent lift on the previous year, according to noted industry analyst, Agriview’s Alan Kirsten.
As well, he said there had been a "dramatic turnaround" in header sales, with 954 machines sold during the same time-frame, which is more than double the average for the past three years.
Between 2006 and 2008 combine harvester sales limped along at a somewhat lacklustre 440 sales a year.
Essentially, during 2009, the industry was within a whisker of achieving annual sales of 1000 units which was last achieved in 2002.
"You can’t say the market’s being driven by the ‘life-stylers’ anymore, it’s been right across the power range," Mr Kirsten said.
It looks as though producers were won over by Canberra’s 2009 tax break initiatives announced in last year’s Federal Budget.
The evidence lies in record June and December sales, mirroring the deadlines for those keen to take advantage of the incentives on offer at the time.
"Those two respective months were the best for the past 20 years," Mr Kirsten said.
"You have to go right back to 1987 to see a December which we have just been through."
The unusually strong sales figures are also said to cover all states bar Tasmania which basically held at last year's levels, demonstrating an Australia-wide trend.
The one downside could be for the year ahead.
This is because, in the absence of the 2009 investment allowance scheme, producers may have brought forward their investment plans for 2010, ordering new equipment to meet the December 31 cut-off point.
Mr Kirsten says this might translate to a quietening in demand for the first three, even six months of 2010.
Nevertheless, Agriview believes the underlying fundamentals of the rural economy remain strong even though the viticulture and wool industries may be struggling more than other sector.
"The prospects for sugar are pretty sound and the grains industry, whilst it came off a difficult end, still delivered a reasonable harvest around the country," Mr Kirsten said.
"So the underlying concern is how much business was pulled forward by the investment allowance."
There’s no doubt the productivity gains being delivered by new-generation farm machinery also are influencing farmer buying patterns.
The technology now on offer is enabling buyers to farm more efficiently than ever, it would appear.
Interestingly, Australia’s latest tractor sales figures – usually a barometer on the health of the rural economy – continues to buck global trends, as can be seen in comparison with UK tractor registrations dipping by more than 12pc in 2009.