Swan Hill agricultural machinery dealer Farm and Diesel says the waiting game still rules the market, even as local producers are staring at what is potentially a boomer crop.
Dealership co-principal Anthony Miliado says producers always knew 2022 was going to be the year of the long wait, so as soon as their machinery does arrive “they are pretty happy”.
But he says the big problem is not getting the big machinery, it’s getting the attachments that go with them.
“Even as we started placing orders with our suppliers, it was made pretty clear if you didn’t want to order without a guarantee of all attachments you went straight to the back of the queue,” Anthony says.
“So, our customers who have taken them incomplete, as soon as the attachments arrive, we whip them straight out and fit them there.
“Our Deutz and Kioti are coping pretty well, and the good news is the engine room of our business, the Italian-made Dieci telehandler, did have some initial supply problems but we now have them starting to land,” he says.
“I suspected we might have an influx after the hay season is done and dusted, although with all the rain we have had, everything has been pushed back a bit so you never really know – and now they coming.
“The Mallee is meant to be dry but this year, this year is really wet. It’s not as bad as further south and southeast but as far as the Mallee goes, it’s wet.”
Anthony thinks for many producers, it could be a real struggle to get on paddocks and he says the demand for fungicides and rust sprays is like nothing he has seen.
He says on the occasions some rust is detected in the Mallee, it is never this early and never this widespread.
“I believe they are now trucking fungicide down from Brisbane in a big way to protect crops, but again many will need to consider aerial spraying because paddocks are so wet – and that all means extra costs for the farmers,” he said.
“I mean, just on Tuesday night, we got another 23mm – and it keeps on coming.”
However, even though it is running out of some supplies, Jakab Motors is having a better year than the wider industry.
Sales of agricultural tractors in August have continued to plough onwards and upwards – surging 22 per cent on the same month last year.
And according to the Tractor and Machinery Association of Australia, they are now 2.5 per cent up on the 2022 year to date.
Its monthly update describes this as “a particularly strong result given the rush of buyers that occurred in June, keen to maximise use of the Federal Government’s temporary full expensing program”.
TMAA executive director Gary Northover says as his group has been reporting for some months now, the industry’s ability to still deliver tractors has been due to the regular forward ordering that has been occurring for the past two years in anticipation of supply challenges.
But Gary says if a farmer wants a specific ‘bespoke’ tractor ordered from the factory, then delivery will be at least 12 months.
Indeed, he says most dealers now are resisting taking forward orders because of the uncertainty surrounding supply, combined with the price movements that are beginning to occur across the board.
“The big question being asked at present is when this incredible upswing will come to an end,” Gary says.
“With tractor sales running at around 50 per cent ahead of what has traditionally been seen as a great year, there is no doubt that this can’t continue,” he says.
“Delays in supply have served to smooth out the peaks in the market, but we are beginning to see signs of when the current boom might end.
“Ownership costs are rising steadily, with both purchase prices and financing costs rising steadily and the current tax incentives are in their final year.
“The challenge for dealers will be to get the timing right regarding inventory given the prospect of machines ordered 12-18 months earlier, might arrive at a period of weakened demand.”
Looking at sales across the nation, results were strong across the board, with NSW sales up 8 per cent to be now 1 per cent behind last year. Queensland was up 46 per cent to be now 13 per cent ahead year to date and Victoria was 24 per cent up on last August, due mainly to supply of small horsepower units and is now up 3 per cent on last year.
South Australia was up 13 per cent for the month, while Tasmania was down by 23 per cent and sales into the Northern Territory were up 89 per cent.
Gary says looking at the performance reporting categories, the small under 40hp (30kw) category was strongly up 25 per cent, to be 10 per cent ahead, YTD.
At the same time, he says the 40 to 100hp (30-75kw) range was up 21 per cent in the month to remain 4 per cent ahead YTD and the 100 to 200hp (75-150kw) category was up again, 7 per cent ahead in August to be 4 per cent behind YTD.
“The large 200hp (150kw) plus range was the standout again this month, 55 per cent ahead of the same month last year, although it is still 1 per cent off YTD,” Gary added.
“Combine harvester sales are ramping up in preparation for this year’s harvest and are now 19 per cent ahead of the same time last year,” he says.
“There is every expectation of another 1000-plus for this product as the renewal of fleets occurs in anticipation of another bumper harvest.
“Baler sales have slowed through winter and are now down 19 per cent compared with last year, and sales of out-front mowers finished down again by 3 per cent.”
