The encouraging news from agricultural equipment auction specialist Cheffins, is that UK tractor sales are booming.
Cheffins, which conducts the largest monthly sale of used tractors and agricultural machinery in the world, has reported sales of more than £9.4m in Q2 2021 at the Cambridge Monthly Machinery Sales – the company’s dedicated site near Ely, in Cambridgeshire.
The total for the quarter shows an uplift of 25% in comparison to sales in Q1 2021, which grossed £7.5m. More than 40% of the sales in Q2 were exported out of the UK. Each of the auctions in the quarter achieved strong results, with April grossing £2.8m, May £3.9m and June £2.7m.
Oliver Godfrey, director at Cheffins commented: “The second quarter of this year has been characterised by a lack of stock and as a result, growing values across all sections of the sales. As stock levels plateaued throughout 2021, the values achieved per lot have increased and this, coupled with some good-quality entries, has ensured that the gross sales for Q2 have been well in excess of the previous quarter.
“As the coronavirus pandemic has consistently disrupted supply chains of new tractors so farmers and contractors have seen deferred delivery dates for new stock. As a result, there has been a mounting pressure on the secondhand market. Prices are growing as farmers and contractors seek out quality machinery, while the export market has come back in full force following the slight lull in sales due to the complications around phytosanitary certification.
“While long-running concerns over subsidies and export trade post-Brexit have put a dampener on prospects for farming across the UK in recent years, as government funding strategies continue to take shape, we have seen an increase in the number of farmers bringing forward business plans and making long-term decisions to be able to react to the implementation of new grants and subsidy schemes.
“This has brought with it an increase in investment into machinery from private farmers, contractors and agri-businesses. Similarly, the new tax relief announced in the recent Budget, in the form of a ‘super deduction’ which allows for 130% of expenditure on qualifying new kit to be written off, will help stimulate the market further.”
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