Tractor sales track toward a 15-year low: where the market stands after Q2 2026
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Tractor sales fell across every month of Q2 2026, with the TMA tracking toward a 15-year low for the full year. Fuel, fertiliser and on farm pressures kept buyers cautious. But balers, mowers and the Northern Territory bucked the trend, showing demand hasn’t disappeared, it’s simply concentrated in specific equipment and markets.
Australian tractor sales stayed under pressure through April, May and June, with the Tractor and Machinery Association of Australia (TMA) recording a year on year decline in every month of the quarter. Dry conditions, fuel and fertiliser pressures on farm, and ongoing supply disruptions linked to the conflict in Iran all played a part, and the TMA now expects the full year to land under 9,000 units, the lowest volume in 15 years.
That’s the headline. But look closer and the quarter wasn’t uniformly weak. Some horsepower segments, states and machinery categories held their ground or grew, and knowing where those pockets sit gives dealers a clearer read on where buyer appetite remains.
| Month | Units sold | Year on year | Year to date |
|---|---|---|---|
| April | ~700 | -10% | -8.5% |
| May | ~700 | -12.5% | -9.4% |
| June | ~1,100 | -15% | -10.7% |
Each month brought a slightly steeper year on year fall, and the usual end of financial year
lift never materialised in June.
By the end of June, every horsepower category sat in negative territory year to date.
| HP category | YTD to June |
|---|---|
| Under 40hp | -16.1% |
| 40-100hp | -7.5% |
| 100-200hp | -10.7% |
| 200hp+ | -9.2% |
The 40-100hp bracket has proven the steadiest performer across the quarter, while tractors under 40hp carried the heaviest losses throughout. Larger equipment told the most volatile story: the 200hp+ segment was still up 2.6% year to date in April, before a sharp 25% monthly fall in June pulled it into negative territory, a reminder of how quickly sentiment can shift on big ticket purchases.
The Northern Territory was the standout of the quarter, the only market to hold a positive year to date result in every month, finishing June up 18.9%. Victoria had a strong April, up 23.4% for the month, though like most states it settled into decline as the quarter wore on. NSW remained the softest major market throughout, ending June down 17.2% year to date.
The TMA has pointed to mounting on farm pressures as the main driver behind the slowdown:
“There has been considerable reporting in the mainstream media around fuel and fertiliser shortages leading to farmers reducing plantings and with some struggling to operate. Our own surveys reinforce this and, not surprisingly, demand for new machinery is likely to remain subdued for some time to come.”
Balers have been the standout category of the quarter, climbing as high as 31% ahead year to date in May and finishing June still 21% ahead. Out-front mowers told a similar story of resilience: after dipping through April and May, mower sales jumped 12% in June alone, a sign that buyers in this category are still active even as the broader market cools.
Not every category shared in the recovery. Self-propelled sprayers and combine harvesters stayed weak all quarter. But the strength in balers and mowers shows demand hasn’t disappeared, it’s simply concentrated in specific equipment and markets.
The quarter confirms what many dealers are feeling on the ground: conditions are tough and buyers are cautious. But the data also points to where the opportunity sits, in mid-range tractors, balers, mowers, and markets like the NT that continue to outperform. Staying close to the categories still moving gives dealers the clearest path through a soft second half.
Chat with our team to see how farmmachinerysales can help you reach the buyers still active in this market.
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