Tractor Industry In Australia During the Pandemic
During the Covid-19 outbreak here in Australia, many businesses are suffering and have been forced to close their doors due to Government restrictions. There are some industries, however, that have been still operating, and business has been booming.
For some, this may be very surprising due to the state of the Australian and global economy. So how is it that some industries are surging?
To help support the Australian economy, the Government introduced a $150,000 instant write off for eligible businesses towards the start of the year. Farmers have taken advantage of this and have upgraded their tractors and other machinery.
This has created a high demand for machinery; however, a shortage of stock has created issues. European manufacturers of farm machinery are still recovering from Covid-19, which has resulted in delays in machinery arrival.
According to the Association of Equipment Manufacturers, the sale of small tractors up to 40hp is up 13% compared to last year’s figures. Whilst Australians were forced to stay at home due to restrictions and avoid contracting Covid-19, they had more time to do jobs around the house and yard.
According to a poll survey conducted by Chi-Squared on Australian Farmers about the Farming Industry, many farmers remained optimistic about their farming operations mainly because the products they are producing are the everyday needs of everyone.
Here are some of the reasons why the farming and agriculture industry is continuously growing.
Needs vs. Wants - The product that those industries are producing are the ones that are in our daily necessities such as wheat, corn, vegetables, fruits, rice, and meat. Therefore it is normal for them to keep their operations ongoing while other industries are closed.
People are staying at home - Due to the continual lockdown in some areas in Australia, many people are staying at home to avoid Covid-19 and are looking for things to keep busy.
“Get Australia Growing” - Major growth plans to help the Farming and Agriculture industry in Australia are being implemented to help them in economic recovery. It will significantly help and boost the farming and agriculture economy because the plans are very beneficial for every farmer and AG industry workers.
This includes growth opportunities like “easing the regulatory burden on farm businesses,” “Continuous growth and protection in the farming industry,” “more job opportunities,” “regionalisation,” “fixing the Murray Darling basin plan,” “Modernisation of the rural innovation system.”
For some, it can be surprising that these industries are still surviving and surging during this time of the pandemic Covid-19. Others are not surprised due to industry stability.