The value of farm machinery to the Irish economy has reached €4.76 billion, according to the first ever economic report in the area, while a jump in raw material costs has contributed to the prices of many tractors doubling in the last decade.
A study into the sector, commissioned by the Farm Tractor and Machinery Trade Association (FTMTA), indicates the industry is responsible for 25,000 jobs - of which 15,000 are directly related to farm machinery.
The research, carried out by agricultural accountancy firm IFAC, also highlights a considerable jump in the cost of doing business for companies manufacturing and selling farm machinery.
Head of Public Sector Services and Economics with IFAC Karol Kissane said the calculations showed "some significant increases in cost, like many other sectors in the economy."
"If we're looking over the last five years, steel is up about 125%, insurance up about 65%, labour is up about 30%.
"If you were a business in this sector in 2020, if you had operational costs of around €1 million - today that's about €1.5 million," he added.
Mr Kissane said these cost increases "kick on to the end customer unfortunately - this is the reality of doing business."
Despite this, he added that the economic impact of the sector at nearly €5 billion "is almost on par with the international tourism industry, and we see it (farm machinery) as a huge economic driver."
Together with more advanced, modern technologies in machines, raw-material cost rises have driven up price tags.
Maurice Kelly, Sales Manager with Kelly's Agricultural Machinery in Borris, Co Carlow, said that "tractors that were €60,000 for maybe a 120 horsepower tractor which was the norm ten or 15 years ago, now you're spending €120,000 to €150,000".
Mr Kelly added that tractors being sold now also have much higher average horsepower.
Outside of tractors, he said prices for combine harvesters are averaging €250,000 to €300,000 but "you can spend much more than that, up to €600,000".
The farm-machinery seller also said that last week he sold a top-of-the-range forage harvester for €775,000.
However, he points out that "the machines we sell have become way more sophisticated. We have embraced smart farming."
"They have features like GPS steering, section control, auto shut-off, and yield mapping. The combines also have a lot of automation.
"These machines are far more efficient and give far more output; they can work for longer with less input from the operator," he added.
Head of the FTMTA, Michael Farrelly, said the research it commissioned highlights the importance of the farm-machinery sector.
"It's never been measured accurately before and it's a very strategically important sector," he said.
"It provides high-quality employment across the country and the industry exports all over the world."
Mr Farrelly added that the fact that we have leading Irish-based manufacturers selling both machinery and parts to manufacturers across the world is "a fantastic success story".
