Farm machinery sales for the past three months were down by 20 per cent.
The flat September quarter result comes ahead of hay baling and grain harvest, with the season drying off and reducing the likelihood of a bumper crop.
Alan Kirsten, managing director of marketing company Agriview, says agricultural machinery sales are worth $3.5 billion a year in Australia, but farmers and contractors are holding back new purchases.
"The baler and hay tools, mowers and rakes. That market is very subdued.
"We've had our fifth year in a row of declining sales.
"With the dry weather in August and September, it slowed down the hay and fodder production."
Rural property seller Ray White says it's seeing more farms going into receivership, and up for sale.
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