Rising confidence sees tractor sales hit 10-year peak

The surge in new tractor sales has continued, with the highest June sales figure recorded for a decade.

Statistics released by the Agricultural Engineers Association (AEA) showed 1,473 tractors were sold in June – up more than 43% on the same month a year ago.

The figure is also more than a third higher than the June average over the previous five years and the highest figure for the month since 2010, according to AEA economist Stephen Howarth.

See also: Phosphate issues cause long delays for farm planning applications

The latest rise in registrations takes the year-to-date total to 6,844 units. This marks an increase of more than 25% on the 5,461 sold between January and June last year and is 12% above the five-year average.

Mr Howarth said the rise could be put down to increased confidence among farmers and growers as harvest approached and grain prices remained high.

There was also an aspect of returning confidence as the UK started to open up again in the wake of the Covid-19 pandemic.

However, he said the impact of the virus continued to dog raw material supply lines and hamper transport logistics.

“Steel factories around the world are struggling with order backlogs while battling virus outbreaks and restrictions on staff numbers,” he said.

“An outbreak at port in China last month closed the entire facility, leaving ships stranded and containers stuck.

“This is typical and widespread, with difficulties throughout the supply chain,” Mr Howarth said.

The knock-on could affect tractor prices in the near future.

With the increased demand from customers and rising competition from other industries emerging from the pandemic, manufacturers are having to pay a premium to secure raw materials.

“These factors are likely to push up lead times and prices in the coming months,” Mr Howarth suggested.

Online grain trading made easy with Farmers Weekly Graindex

It takes just a couple of minutes to create a listing on Farmers Weekly Graindex and you’ll get a range of prices to compare from active buyers who want your grain.
Visit Farmers Weekly Graindex

Want to find out how much your tractor's worth?

Our new tool will provide you with an instant valuation of any tractor in our database. This feature is in testing phase and we'd like to get your feedback.
Value my tractor