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New Tractor Registrations Plummet in Poland: PIGMiUR Reports Worst February in 5 Years

AUTOMOTIVENew Tractor Registrations Plummet in Poland: PIGMiUR Reports Worst February in 5 Years

The worst monthly result in 5 years – this is how the Polish Chamber of Commerce for Agricultural Machinery and Equipment (PIGMiUR) comments on the data regarding the number of registrations (i.e. de facto sales) of new tractors in February 2024. A similar trend is observed in the second primary segment of new agricultural machines, which are trailers. February is the worst month in this regard for the past two years. However, the number of registrations of agricultural machines from the secondary market continues to rise.

“Only 528 units were registered in the second month of this year. February is the worst month in terms of registered (and therefore actually purchased) new tractors since the same period in 2019, when there were 521,” according to the latest compilation that the Polish Chamber of Commerce for Agricultural Machinery and Equipment (PIGMiUR) presents monthly, based on CEPiK data. “Compared to February 2023, when 782 new tractors were registered, we are talking about a decrease of 32.5 percent,” as can be learned from the PIGMiUR report on the registration of agricultural machines for the second month of this year.

Registration of new tractors in January and February: a decrease of over 18 percent

The Chamber also indicates that 1224 new tractors were registered during the first two months of 2024, which is 270 units less than in the same period last year. “This equates to a decrease of 18.1 percent,” summarizes PIGMiUR. The most popular brands of newly registered tractors in the first two months of this year turned out to be New Holland (206 units), Kubota (175) and John Deere (163). Other brands, including Deutz Fahr and Solis, placed lower. In terms of registration of new agricultural machines of this type, the leading provinces were Mazowieckie, Łódzkie, and Kujawsko-Pomorskie.

Registration of new trailers also decreasing

A similar trend is observed in the case of the second main category of agricultural machines, i.e. new trailers. In February, 392 were registered, which is the smallest number of registrations in the last two years. “In 2023, in February, 454 were registered. In the first two months of this year, 806 were registered, which is 150 less than a year ago. This represents a decrease of 15.7 percent,” can be learned from the compilation prepared by the Chamber. Pronar, with 213 units, remains the leader in this segment, and the following positions are occupied by Metal-Fach and Metaltech.

“The situation is clearly getting worse,” comments Hubert Seliwiak – PIGMiUR’s marketing manager on the registration results of new agricultural machines. In his opinion, this is the result of increasing pessimism and the resulting caution with which potential buyers approach potential investments in new agricultural equipment.

Potential buyers of new machines are holding back from investing. It’s getting worse with the own contribution

In addition to the reasons mentioned by him for the increasingly poor moods among potential buyers of new agricultural machines, there are also, among others, increasing bureaucracy, decreasing global grain prices, and the lack of solution to the ongoing crisis caused by the uncontrolled flood of the Polish market by products from behind the eastern border. Despite the fact that Polish farmers could benefit from various forms of financing for the purchase of new machines, e.g. from EU funds, they are holding back from making key investment decisions for themselves. It’s also getting worse for them with obtaining the so-called own contribution, because the possibility of taking out a lease loan was severely limited by the law on pawn loans in January – comments the representative of PIGMiUR and reminds that the lease loan is the main form of obtaining own funds for the purchase of new agricultural machines.

The secondary market for agricultural machines continues to grow

On the secondary market, after two months of this year, PIGMiUR records 4845 registrations of tractors. That’s 663 more than in the first two months of 2023. An increase of 15.8 percent. The market leader in February was John Deere (833 registrations), leading in three age categories: 3-5, 6-10 and 11-20 years. In the oldest category, i.e. over 20 years old, the Polish brand Ursus is the leader. PIGMiUR notices an even greater increase in the segment of used trailers. In the period January-February, 1283 of them were registered, i.e. 236 more than a year ago. “This means that we are currently noting an increase in the secondary market by 22.5 percent,” the Chamber comments in the February compilation.

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