A & P sales a positive

Farmers defied market swings, buying tractors and other farm machinery at the Canterbury A & P Show last week.

While it might not have been a shopping frenzy, some businesses reported brisk trading, contrary to lower incomes for dairy farmers and sheep farmers relying on lamb sales. Lamb prices are likely down by $30 from $130 last season and dairy farmers are facing a weaker milk payout.

However, farmers have made a conscious effort to reduce their debt levels the past two seasons and returns are still good for deer and beef cattle.

Times might be tough in some areas of the rural sector, but there was still money for spending on improving farm businesses, Canterbury A & P Association president Richard Lemon said.

‘‘I believe they are spending, from what I have heard around the traps.

‘‘The Blackwell guys couldn’t have been happier with the action around their trade site and we have heard of some positive sales being made.’’

Farmers may have placed themselves in a better position after lowering debt, he said.

‘‘Even though we have seen a hiccup with lamb and dairy prices, I still believe the confidence is out there in the rural sector.

‘‘We are a resilient lot who build into the system the ability to manage cashflows.’’

Tractor sales were being made by farm machinery and services company Drummond and Etheridge. The company sells tractors valued between $30,000 to $400,000.

The company maintained a trade site at the show mainly to meet customers, but had seen a turnover of tractors, managing director Mark Etheridge said.

‘‘We have secured some sales and have certainly created some interest. The lawncare business has been very good and it’s probably been one of the best shows we have had for ride on mowers and Gators [small vehicles for rugged terrain]. There are customers out there with good debt ratios and most are on a maintenance programme, and will replace on their need.’’

Some farmers might be in a tighter position, but this was always the case, he said.

Tractor sales are up 20 per cent from the year ending October.

Sales had been ‘‘quite remarkable’’ at the Blackwell site and up from the last show, Blackwell Motors dealer principal Steve Grenfell said.

‘‘We have done a number of transactions at the show and there is obviously plenty of money about and the rural community is not suffering.’’

New Holden models had stimulated demand, he said, and there was good buying to be had because market stocks were up.

‘‘The used market has been strong, probably 20 per cent up on last year.’’

Mr Lemon said farmers in the dairy industry included big operators, who worked on managed budgets to improve businesses.

The president of the association has also been joining in the spending, converting part of a mixed cropping farm into a dairy operation in the past year.