With this being my last blog for August, the summer seems to have passed by so quickly with not a lot to show for it weather wise. Most of the wheat crops still remain in the fields. In a normal year combine harvesters, tractors and trailers would already be busy in the fields getting the grain to the grain intakes. I hope that, when harvest time does come, yields will be reasonable. It doesn’t do our industry any good when our farmer customers are struggling to make decent returns. How well or not our customers are doing will reflect in the monthly tractor sales figures and, of late, they have been steadily heading south. 

The FTMTA have just produced their new tractor registration figures for July and they show a 13% decline on the same period last year. You can read the FTMTA’s more detailed report in this edition of Service Dealer Ireland. It remains to be seen if there will be an improvement in the coming months.

This downward trend is not just occurring in Ireland. It is also happening in the UK and in Europe. The European Agricultural Machinery Association (CEMA) have also published their business climate figures for July and it shows that Europe is still in negative territory. The tractor market in particular showed a further significant downturn compared to the previous month, the exception being France and Spain. 

What is the driving force pushing these figures down? There are a lot of factors that are coming into play. The main one being that farm incomes have significantly fallen in 2023, due to high production costs and a decline in commodity crop prices. This has led to fewer new tractors being purchased. High interest rates are also having an effect on demand.

Commodity prices such as steel and aluminium have increased significantly which have had a knock-on effect on agricultural machinery production costs. This, in turn, has led to higher machinery prices. A step too far perhaps for some farmers who are already struggling to make ends meet. 

World events have also had an impact on demand. The pandemic and Russia’s invasion into Ukraine affected sales and is still having an influence but, thankfully, the situation is not as bad as it was a year ago.

Spare parts supplier, Genfitt, which was acquired by Kramp last year, produce an annual survey on the state of the agricultural industry. Called the Genfitt Knowledge Report, their 2023 report, which is compiled from independent industry stakeholders, showed that 60% of responding farmers (3,700 of them) spent under €10,000 on machinery, 30% spent between €10,000 and €50,000 while 10% spent over €50,000. You can see the full report by clicking here.

So what is the future outlook? I hope that we are at the bottom of the market cycle. I am optimistic that things will get better and demand for farm machinery will soon improve. Many analysts predict a recovery in 2025. Farm input costs, such as fertiliser and fuel, are steadily coming down, which is good news. An improvement in commodity crop prices will be a step in the right direction.

The latest FTMTA Statistics Service Report for July 2024 shows a reduced level of activity in the farm machinery sector in Ireland with new tractor registrations continuing in a downward trend.

The numbers of imported used tractors and machines, registered for the first time in Ireland, increased compared with the same month of July 2023.
 
Tractors

The July 2024 new tractor market at 237 units was 13% lower compared with the same month in 2023. There were 1,527 new tractors registered in the year-to-date, an 11% decline compared with the first seven months of 2023.
 
County Cork continues to deliver the highest number of new tractor registrations at 209 units for the year-to-date, while Tipperary is ranked in second place with 136 units followed by Limerick third place at 86 units.
 
The most popular power band was the 161 to 200hp category, which for July 2024 accounted for 21.10% of all new tractor registrations for the month. Tractors in the power band lower than 100hp accounted for 11.39% of all new tractor registrations, slightly higher than for the same month in 2023. The over 200hp category now accounts for 13.51% of all new tractors. The monthly average tractor horsepower figure for July 2024 was higher at 147hp.
 
The FTMTA data shows that 264 imported used tractors were first-time registered in Ireland in July 2024, 12 units more than in July 2023. For the year to date, 1,703 used tractors were imported and registered for the first time, a 9.7% decline.
 
Telescopic Loaders

The Irish market for new telescopic loaders reported a 12% increase in July 2024 at 93 units compared with July 2023 when 83 units were registered. The year-to-date market shows a 3.25% increase in registrations. The two leading brands JCB and Manitou account for 71% of the total new market, while Kramer is ranked third with a healthy 12% market share. There were 41 imported used telescopic loaders registered in July 2024.
 
Wheeled Loaders

The Irish wheeled loader market recorded a lower number of new registrations in July 2024 at 10 units, compared with July 2023, while the year-to-date market decreased by 17%. The position of the smaller Chinese manufactured machines at the lower price and power end of the market again declined marginally to 50% of the total year-to-date new wheeled loader registrations in Ireland. There were 9 imported used wheeled loaders registered in July 2024.

Backhoe Loaders

There were 12 new backhoe loaders registered in July 2024 compared with July 2023 when 10 new machines were registered, which converted to an 4.35% year-to-date decrease. There were 9 used backhoe loaders registered in July 2024 in Ireland.
 
UTV Registrations

There were 27 new UTV’s registered in Ireland in July 2024, with just one used imported UTV registered for the first time. For the year-to-date 230 new UTV’s were registered in Ireland.

Farmhand returned to the Tullamore Show on Sunday 11th August with their largest machinery display yet.

Visitors got the opportunity to see the 2024 BiG X 980 demo machine in public for the first time. A range of Krone grass machinery were presented, including the EasyCut R280 mower, Vendro 560 tedder and Swadro TC 640 steer rake alongside other machines from Amazone, Quicke and APV. 

A selection of branded merchandise was on sale. New design hoodies and half-zips were available alongside other popular items; including jackets and coats, limited edition jerseys, and workwear for both adults and children, all on offer at special, show only prices.  

Fastparts were on an adjacent stand showing both the Rakeman and APV grass harrows, with mounted seeders. A display of Dromone Ball and Spoons to fit almost every make and model of tractor, and a selection of implements, including the NEW Quicke Multigrab M+ for handling manure, silage and waste, and the TAMS 3 eligible Shearman 1700 bale shear with plastic catcher. 

John Deere tractors were delivered to Morrisons stores around the UK and the retailer’s headquarters on Thursday August 8th 2024 as the 24 Hours in Farming event, #Farm24, got underway.  

Ben Burgess provided a tractor in Norwich

Machines were set up outside seven stores to help engage the public in the initiative which aims to celebrate the hard work and dedication of those involved in the agricultural industry. 

The tractors were provided by John Deere dealerships Ripon Farm Services, Tuckwells, Ben Burgess, Masons Kings and Charlies Ag and Turf. They were branded and parked up outside stores in Skipton, Boroughbridge, Ipswich, Norwich, Teignmouth, Welshpool and Witham for Morrisons customers to see before they entered the shop. 

A tractor also took pride of place outside the retailer’s headquarters at Hilmore House, near Bradford. 

John Deere tactical marketing manager, Chris Wiltshire, said, “With a focus on showing consumers what really goes on in the agricultural sector, 24 Hours in Farming is a great initiative that shines a light on farming and everything that goes into producing food for the Great British public.

“All too often we hear about the disconnect between the food we eat and how it’s produced, so teaming up with Morrisons is a simple and effective way of reminding customers that there is a story behind every item of food they buy, just before they buy it.” 

Tuckwell's provided a tractor in Ipswich

Region by region 

Masons Kings, based in south west England, provided a 6R 250 plus a Gator ATV and an X127 ride-on mower to the Teignmouth Morrisons in Devon. Roger Prior, the company’s director, said, “We have been committed to the farming community for more than 40 years and we understand the challenges they face producing food. This is why we are proud to support #Farm24 which highlights the work they do on a daily basis.”  

Ripon Farm Services installed a 6R 250 at Morrisons in Skipton, as well as machines for the retailer’s Hilmore House headquarters and Boroughbridge store. 

Richard Halsall, group sales manager, said, “#Farm24 is a great initiative which highlights the daily efforts and hard work that goes into agriculture and food production. We have been supporting and serving the farming community for more than 40 years, we are proud to be a part of the campaign to show our appreciation for all the work that goes into feeding our nation.”

Tuckwells provided a 6R 185 to Morrisons in Ipswich and a 6R 250 at Witham. The company’s director, James Tuckwell said, “As a family-run business that has been involved in supporting the agricultural community for 70 years we are delighted to be part of #Farm24. 

“As well as running our dealership we are farmers too so know first hand the essential role farmers play in providing high-quality food in a sustainable manner while caring for our land and habitats. We are proud to support them and help highlight the incredibly important work they do.”

Ross Holloway, director at Charlies Ag and Turf, added, “We are proud to be able to supply and service our farming community and be a part of helping to produce British food.” 

Charlies provided a 6R 185 to the Welshpool Morrisons.

Ben Turner, dealer principal at Ben Burgess, added, "We're proud to contribute to #Farm24 by supplying a John Deere 8RX to the Norwich Morrisons.

“This event highlights the essential efforts of our farmers and their crucial role in providing food for the nation."