Italy's Agricultural Machinery Market Faces Steep Decline

The Italian agricultural machinery market is facing a significant downturn, with registrations for all vehicle types declining in the first nine months of 2024. This decline is primarily attributed to a combination of factors, including increased list prices, decreasing agricultural incomes, and delays in the implementation of new government incentives.

According to data compiled by FederUnacoma, the Federation of Manufacturers, tractor registrations have dropped by 15.6% compared to the same period last year. Combine harvesters have seen an even more significant decline of 31.9%, while tractors with loading platforms and telescopic handlers have experienced decreases of 18.7% and 18% respectively.

Regional analysis reveals that the sales decline is particularly pronounced in Emilia Romagna, Lazio, Sicily, and Veneto. However, Lombardy and Apulia have shown more resilience, with less severe drops in registrations.

FederUnacoma has attributed the market downturn to several factors:

• Increased list prices: Higher prices for agricultural machinery have made investing more challenging for farmers.

• Decreasing agricultural incomes: Reduced profitability in the agriculture sector has limited farmers' purchasing power.

• Delays in incentives: The slow rollout of government incentives, such as the PNRR (National Recovery and Resilience Plan) and Innovation Fund, has dampened market demand.

The Federation has urged the government to expedite the implementation of these incentives and streamline the allocation processes to avoid further disruptions to the market.