Figures published by the CSO (Central Statistics Office) reveal that 2,453 second-hand tractors were licensed in the Republic of Ireland last year. Most or all of these 2,453 used tractors were imported during 2017.
This increase in used tractor imports has been the case since the Brexit referendum in the UK caused the value of sterling to plunge, making used tractors from Britain and Northern Ireland cheaper to buy for Irish farmers.
This situation contrasts with the scenario seen in 2016 (and previous years), whereby sales of new tractors outstripped imports of second-hand units. Between 2016 and 2017 there was a rise of nearly 30% in the number of second-hand tractors licensed for the first time.
From a dealer perspective second tractor sales are attractive as there are no trade-ins involved. These tractors can also be hired out during the winter to work mixer wagons and during the summer to contractors making silage and short of HP.
Another reason in my opinion why these imports are popular is that these tractors often come off large farms in Britain where they are well maintained by Irish standards and are working in a drier climate.
In 2016 New Holland (21%) topped the market for new tractor sales, followed by Massey Ferguson (20%) and John Deere (19%) in that order. However the opinion from the machinery trade indicates that Massey Ferguson was the market leader last year (2017) in the new tractor sales league.
Most new tractors were sold in Co. Cork last year-a total of 206 units. Next was Co. Tipperary, with a tally of 151. The trend over recent years has seen a switch to higher HP tractors. The most popular is the 101-120hp segment, with 34pc of all new tractors. Next is the 121-150hp segment, with 30pc of all new tractors.
One sales man I spoke to at the FTMTA Grass & Muck event told me that it was easier to sell the more expensive tractors as farmers and contractors like the higher spec and are prepared to pay for same.
According to the Teagasc national farm survey for 2017 the average dairy farmer earned a record €86,115 last year on foot of a strong upturn in dairy prices globally. Writing off a new tractor against tax is an attractive option for them.
Tillage farmer incomes were along way behind as were beef and sheep farmers earnings. So the top customers for new tractors tend to be dairy farmers and Agri contractors doing silage and other work for them. Other farmers have to settle mainly for used tractors.
