Buoyant feel to tractor market for first half of 2023

Tractor registrations have increased by 6% in the first half of 2023, according to latest figures from the Agricultural Engineers Association (AEA), as manufacturers and dealers catch up on the backlog of orders.

The data shows that in June alone, some 1,128 machines were registered – an increase of 20% on June 2022 – while for the year-to-date, the figure stands at 6,777.

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As well as being ahead of the equivalent period in 2022, the number of new registrations is also up 7% on the five-year average.

AEA economist Stephen Howarth said: “That represents over 350 more machines recorded so far this year, as the industry continues to reduce the backlog of orders which built up during 2021 and 2022.”

Supply chain disruptions were attributed first to Covid and then to the war in Ukraine.

This meant there was an extension in lead times from orders being placed to tractors being delivered.

Demand had been buoyed by better farm incomes in 2022.

However, uncertainty about changes to farm support and weaker economic prospects for 2023 had tempered some of this demand, Mr Howarth explained.

This uncertainty continues to be felt, with the AEA reporting an apparent downturn in orders, which may feed through to registrations as the year progresses.

New registrations in the month of June did slip slightly below the five-year average for the first time since February.

An analysis of agricultural tractor registrations in the first half of the year broken down by power band and region will be released next week.

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