Good rain equals good machinery outlook

John Deere 8000 series

Good rains to kick the winter cropping season into gear have generated strong enquiry for machinery dealers across Australia with many expecting sales to follow. Source: Farm Weekly

Sentiment in the agricultural machinery segment is buoyant across Australia following good rains in most regions.

With a generally strong start to winter crops following widespread rains across Australia, dealers are reporting positive signs.

In western NSW, Warren based Agco dealer, Jack Ryan said the region had received half their annual rainfall in the past few weeks.

“The feeling is more positive than it has been for a while and when it dries out a bit, and they get the rest of the crops in, and when they see what they’ve got, it will be alright,” he said

“The general consensus is good if we get a bit of sun now.

“We’ve got lots of quotes out there for spray rigs and fertiliser spreaders but everyone is waiting to see what happens. He said the huge rains had destroyed some crops.

“One client has lost 7 – 800 acres of chickpeas already.

“Some of those blokes have had more than half their annual rainfall in about a month.

“There’s been enquiry but they are reluctant and want to see what happens next.”

Mid-north South Australian Case IH dealer Rob Dingle of Rocky River Ag said the region was “as good as I have ever seen it.”

“We’ve had 50 – 60 mm in the past four weeks and it has set this whole year up. He said enquiry was good but they generally tried to push forward order programs to allow better dealer stock control.

“We tend to see harvester sales when they are sitting in them.

“We try to encourage guys to think ahead when they are using equipment because if we don’t order stock early, you can’t be guaranteed to get it.”

Mr Dingle said self propelled sprayers had been moving well and he expected more interest with crop conditions likely to demand fungicide spraying.

“We have our marginal areas, but it is a pretty good and reliable region,” he said. “I’m pretty positive about it after this last rain.”

Western Australian wheatbelt dealer principal, Stuart Boekeman, said it was a much needed good start for the region.

“Our soil profile is wet and everything is up and out of the ground and looking good and each week we seem to be getting 10 or 15mm of rain to keep ticking along,” he said.

He said the start helped build prospect numbers.

“We are quoting but we haven’t seen the order uptake just as yet,” Mr Boekeman said.

“WA is not a big forward ordering state so as dealers we need to hold stock.

“Ninety per cent of farmers are not prepared to forward order and want to come to the Dowerin field days and get a new harvester.”

He said the past five years had seen below average yields.

“We need this big season to come off,” he said.

“We need to have a few good seasons and get farmers cash flow going again to get them feeling comfortable and know they can still invest.”