First-half tractor registrations down 25% on average

New tractor registrations for the first half of the year have dropped by 17% compared to the same period last year, marking the lowest level recorded by this point in the year since 1998.

The latest June figure brings the total for the first half of the year to 4,869 machines registered, which is also 25% below the five-year average, according to figures from the Agricultural Engineers Association (AEA).

See also: Tractor registrations slump to 24-year low

Although the number of agricultural tractors registered in the UK in June remained well below the seasonal average, the year-on-year decline was actually the smallest since November.

This suggests the downward trend may be bottoming out.

Overall in June, 852 machines were registered, marking a 2% drop compared to the same period of 2024.

AEA economist Stephen Howarth said: “Sales have been pretty low so far this year by historic standards. It’s a similar picture across the wider machinery market too.”

The reason for the drop, he said, is a direct reflection of low buyer confidence in the farming sector.

“The arable sector is having a difficult year financially and, though livestock farmers are faring better, confidence is low given the political and economic backdrop,” he explained.

Mr Howarth was clear that the inheritance tax threat, as well as the sharp drop in Basic Payment Scheme funding in England and the sudden cancellation of the 2024 Sustainable Farming Incentive, plus uncertainty about future agricultural policy, were contributing factors.

“It’s all adding up to farmers holding back on investment,” he said.

NFU vice president Rachel Hallos wasn’t surprised by the drop in figures, saying that it was a direct reflection of the current uncertainty around agricultural policy and cashflow pressures.

“We need clear, stable policies from government that help rebuild confidence and give farming businesses the certainty to invest in the future,” she said.