Industry lobby group the Tractor and Machinery Association of Australia (TMA) says it’s been heartened the number of tractors delivered in April and May of this year turned out to be the highest since 1985.

And the trend continues to be encouraging.

Sales for the June quarter were up by more than 17pc. (See separate story).

Industry confidence is being further buoyed because farmers believe commodity prices will remain high boosted, hopefully, by the prospect of improved seasons.

However, there are some serious down-sides, according to executive director, TMA, Vin Delahunty.

He says the industry remains concerned about its ability to meet demand, principally because of:

• The recent rundown of new and used machine inventory.

• The availability of the necessary skills in the manufacturing sector.

• Booming global demand for machinery.

“A further concern for the industry is the massive increase in the cost of farm fertilisers and chemicals,” Mr Delahunty said.

“The predictions are for these prices to hold at high levels, placing continued pressure on farmer cash flows.”

Then the “huge increases” in the cost of steel show little evidence of easing.

Incredibly, TMA says the price of such a key input currently can only be guaranteed for about two weeks, presenting this country’s machinery manufacturing industry with one of its greatest challenges.

Add in the cost of road transport to better understand the cost-pressures facing an industry which is striving to claw its way back to profitability after years of drought.

Nevertheless, the Australian farm machinery industry has every reason to be optimistic about the future, according to the TMA.

“The industry delivered more than 11,500 tractors in the past year - despite every supplier struggling to meet customers demand,” Mr Delahunty said. (See separate story).

With farmers continuing to plan and invest in new farm machinery, the TMA says it’s just a matter of time before producers will get the rains they need to grow a significant winter crop.