Australia farm tractor market trends and opportunities

1. The market for tractors in Australia is anticipated to expand at a CAGR of 3.43 % between 2022 and 2028. Australia has more than 25.8 million food consumers and is one of Oceania's major food markets. In terms of agricultural and industrial output, the country has experienced a significant expansion in farm mechanisation. Because to its adaptable operation characteristics, the 50-100 HP category had the greatest market share in 2021. Government programmes and attempts to facilitate lending and enhance agriculture-related activities are the primary growth drivers for the agricultural tractors industry in Australia. In September 2020, the agricultural ministry of the nation issued the national agricultural innovation policy statement, a vital component of the National Agricultural Innovation Agenda of the Australian Government. A world-class agricultural innovation system is a government objective and a crucial component of Achieving Ag2030, which supports the industry's target of a USD 100 billion sector by 2030. Major Highlights In 2021, the agricultural tractor market in Australia increased by 33.3% compared to 2020. The recovery from the COVID-19 epidemic was aided by excellent monsoon rains in 2020 and 2021, which increased crop productivity and tractor sales. In terms of agricultural acreage, the country is one of the largest in the APAC area. There are 30,9 million hectares of arable land in the country, which makes it an expanding market. Due to the relatively slow growth of agricultural exports, the Australian government is trying to double the amount and value of agricultural goods exported by 2025. The government is picking regions based on their existing export food production and their potential to boost output via the implementation of new institutional changes. Australia's farmers are rich and can afford to purchase agricultural gear such as tractors. Also, the country's farmers benefit from simple agriculture finance for the purchase of agricultural gear.

2. In 2020, the country imported tractors worth USD 1.01 billion, with the United States accounting for 37.8% of imports, followed by Germany. Around one-third of the agricultural machinery sector in Australia is comprised of exports. On almost one-third of Australia's agricultural area, wheat is cultivated; wheat is the top crop with a 58% share, followed by barley and canola. Australia sold USD 39.6 million worth of tractors in 2020, with New Zealand accounting for 70.0% of Australia's total exports of tractors, followed by Bolivia and Peru. Market Trends and Opportunities Use of More Energy-Efficient Tractors Is Growing The AgriStarters initiative seeks to enhance the living circumstances of agricultural supply chain members and offer critical equipment in a sustainable manner. This goal is in addition to the previously declared objective of reducing overall glasshouse gas (GHC) emissions by 40 percent by 2030 and to zero by 2040. Use of energy-efficient tractors will achieve these goals and contribute to the expansion of the Australian tractor market. Use of Non-Traditional Fuels in Tractors

3. The agricultural tractor industry in Australia is experiencing a surge in demand for tractors powered by various fuels. The fluctuating cost of conventional fuels such as diesel has an effect on tractor sales. Hence, manufacturers are focused on the development of tractors that run on alternative fuels; tractors that operate on liquefied natural gas (LNG), compressed natural gas (CNG), propane, diesel, and kerosene are now available. Also, rising environmental concerns fuel the market for biodiesel tractors. Nonetheless, farmers increasingly choose them because to their very cheap operating costs and low maintenance requirements. Agricultural Equipment Technology on the Australian Tractor Market Using a GPS tracker, telematics enables agricultural tractor operators to precisely monitor their fleet of vehicles and trucks. It collects data from agricultural equipment operating in a field and transmits it in real-time to the internet. Robotic sowing and weeding technology aid in determining the precise amount of pesticides a crop need. It is extraordinarily precise and decreases pesticide use by 90%. It aids farmers in preventing and controlling herbicide- resistant weeds. AI assists in analysing plant health, soil condition, temperature, and humidity, among other factors. It enables farmers to make better decisions by understanding sensor-collected data about the field's surroundings. Competitive Environment John Deere and Case IH have a combined market share of over 30% in Australia's tractor market. More than 40 percent of the market share for agricultural tractors in Australia is held by the top three competitors, which poses a significant competitive threat. John Deere introduces a new Electric Variable Transmission for certain 8 Series Tractors and a new JD14X engine for 9 Series. The EVT enables electric power production, a future method for the industry to utilise the power supplied by tractors for implements. In March of 2021, CNH Industrial teamed with Monarch Tractors, an American agri-technology business. The alliance will enhance long-term sustainability and increase farmer knowledge of the significance of zero-emission agriculture. Looking for agriculture and farm finance and loans Australia wide? Orchard lending finance brokers can assist with all types of farm and agriculture loan financing, with flexible security and unsecured options.