Machinery dealers are facing considerable financial and mental pressure as sales slump in response to challenges facing the whole agricultural sector.

One of the most telling indicators is the significant drop in the number of tractors being registered in the UK.

In August, for example, less than 500 new tractors were registered – a 31% drop on last year – while for the year-to-date, the market is 15% back, with just 7,325 new tractors sold according to the Agricultural Engineers Association (AEA).

See also: New government pledges to reverse low farmer confidence

Stephen Howarth, economist at the Agricultural Engineers Association, said: “It’s been a really tough year. There is so much uncertainty around farming in general, and confidence is very low at the moment.

“There is a combination of factors which impact sales, but mainly, farmers are feeling unsure about the future, making them much less likely to purchase machinery.

“The weather volatility over the last few years has, of course, added another challenging dimension.”

Over the past 18 months, the UK has experienced its wettest period since 1836, severely impacting crop yields and farming operations.

Combined with financial pressures, this has led to a sharp reduction in profitability. The NFU reports that 65% of farmers have seen a decline in their profits, and many are now questioning the survival of their businesses.

Machinery market

This concern is echoed across the used and second-hand machinery market.

George Pykett, managing director of G & R Pykett dealership in Derbyshire, said: “We recently tried to sell a tractor to a well-established farmer, but he couldn’t secure finance because his accounts looked so poor.

“Our yard is full, and we could easily fill it ten times over with machines. However, they are harder to move now.

“The government has also made exporting machinery and tractors incredibly complicated. Brexit has turned what used to be a straightforward process into a real challenge.

“About 90% of our export customers have been put off buying. Our business used to rely on exports for 50% of our sales, but now it’s only around 10%. That’s a huge drop.”

Financial strain 

Hiring companies are also grappling with decreased demand and financial strain among farmers.

Brinley Collins, director of Collins Brothers Machinery Hire in Pembroke, said: “In the last 18 months, I’ve seen a significant reduction in farmers hiring our machinery, which has seriously impacted our finances.

“Over a third of our hires come from the farming sector, and with this, the future looks concerning.

“We share the same outlook as the farmers – if they can’t raise their rates, they simply won’t be able to afford to hire from us anymore, which is obviously bad news.”