Machinery sales benefit from positivity in industry

The Cervus Equipment Hamilton dealership has recorded one of its most successful starts to its financial year since it was established in 1964, according to branch manager Troy Thomas.

“John Deere runs its financial year from November 1 – October 30, and we’ve just got the results from our first quarter, and it’s been declared as the best start we’ve ever had at this location, with the most tractors sold in this three months than in any other year,” Mr Thomas said.

He credits the success of these sale results to the positivity in the farming industry at the moment.

“What’s been favourable for us has been the really good seasons; we’ve had two absolute crackers, with two really good springs,” he said.

“The year before last, we had an almighty spring, which helped bring our fodder, hay and silage storage up, and last year, we didn’t even have to use a great deal of storage.

“A lot of our clients are running fat lambs and Merinos, and they, along with the beef people, are getting really good prices, so things are definitely looking up.”

He said farmers are often cautious about making big farm equipment purchases, even after a positive year.

“We find that farmers will have one good year, and are always saying ‘tomorrow is the day I’ll buy a new tractor’, and they enjoy the good times, but are worried what’s going to come, so often never do, but we’ve had two really good consecutive years, so the money’s in the bank,” he said.

Mr Thomas said farmers rely on them to make their jobs easier.

“Farms are ramping up all the time, the cost of doing business is going up, so productivity is always a big thing,” he said.

“Eighty per cent of our farmers are grass growers, and they’re starting to realise that instead of increasing landholding, they’ve got to increase productivity of their land, so getting soils right, getting the seed in at the right time, and getting it in the ground the right way, and that’s where we come in.”

He said they offer traditional machinery gear, augers, sprayers, sowing and tillage gear, but also more advanced gear for farmers willing to invest.

“People are starting to accept new technologies, like Global Positioning Systems (GPS), as a common thing these days, an entry level GPS can cost as low as $2,500, whereas ten years ago it would have cost four times that,” he said.

He said they are looking forward to a strong year of sales ahead, as the farming industry continues to boom.

“We live in a large country town, so when the rural sector’s going well, the town’s going well,” he said.

“We live and breathe it.”