A combination of improved farm incomes and a shortage of quality secondhand tractors is boosting the market for new tractors, according to the Genfitt Knowledge 2021 report.

Order books for machinery are very strong, especially for tractors, a sure indicator that farm incomes have improved, it found, noting that disposable income and time for planning was a major factor.

“There’s a supply issue, as new machines aren’t arriving quickly enough to fulfil demand. This is visible in most supply chains. Suppliers didn’t put in big enough orders, which is causing issues as they can’t get the goods and there’s a squeeze on components too.

Dealers simply cannot meet demand

“Everyone’s having to plan ahead – from manufacturers to consumers. The order books will stay full for now.”

Genfitt has said that the secondhand market has been adversely impacted by Brexit.

“Dealers simply cannot meet demand, which they have traditionally done by importing used tractors from the UK. There’s a consensus that the combination of improved incomes and a shortage of quality secondhand tractors is boosting the market for new tractors,” it said.

There is no evidence of a slowdown on the horizon

Disposable income is also finding its way to agri store owners. The report found that there was a prediction that business would slow down when the world reopened. However, this has not been the case.

“There is no evidence of a slowdown on the horizon, so retail is going from strength to strength.”

On future technology, the report found that robotics such as drones are doing more work, but Ireland has yet to see them at real scale.

“Similarly, virtual fences could simplify cattle control, but tagging a whole herd is still pretty costly. It’s holding people back.

“As with all technology, when prices come down, potential and usage will go up. Until then, many of the neat ideas we see will stay that way.”