AN ANNOUNCEMENT this week made by Federal Treasurer Jim Chalmers has been welcomed as having the potential to give owners the right to repair (R2R) their own farm machinery without voiding manufacturer warranties.

In his address on Wednesday at an Australian Business Economists luncheon in Sydney, Mr Chalmers outlined reforms afoot to enhance Australia’s productivity, including R2R.

“I expect we’ll start by fast-tracking the adoption of trusted international product safety standards and developing a general right to repair, both Commonwealth-led reforms,” Mr Chalmers told the gathering.

While details are yet to be seen, Mr Chalmers’ acknowledgement that productivity needs to be improved has struck a chord with organisations including the Tractor and Machinery Association of Australia, the National Farmers Federation, and GrainGrowers.

Mr Northover said one of the biggest barriers to productivity in the agricultural machinery sector was the availability of skilled workers to fill in-demand jobs at dealers in regional and rural communities.

“We know…dealers across our network are looking for skilled workers to do the jobs that can advance capacity to support our farmers and we’ve seen statistics that show that at any one time almost 100 percent of dealers can be advertising for workers, with often low applicant numbers and fill rates less than 50pc,” Mr Northover said.

“It is essential that efforts to improve productivity also focus on the issue of a skilled workforce and we now look forward to working with governments, farmers and industry to achieve much-needed benefits for farmers from these new productivity reforms.”

Mr Northover said TMA members were aligned in supporting Australian farmers with high-quality, safe agricultural machinery that reduces downtime and improves farmer incomes.

“The TMA has already been working hard to advance collective industry efforts to join our global counterparts in providing R2R for farmers and making great inroads with members who are already servicing the R2R needs of farmers.

“The treasurer’s announcement provides the opportunity for industry to continue working together with federal and state governments to deliver stronger outcomes for agricultural productivity by securing R2R for farmers that protects incomes, improves productivity, and ensures safe operation of agricultural equipment.”

The TMA, the NFF, GrainGrowers and others have already been working with industry and government to advocate for these rights for farmers and contractors, and build an understanding between machinery owners and manufacturers.

In welcoming the Treasurer’s overture on R2R, NFF chief executive officer Tony Mahar has urged the Federal Government to commit to including agricultural machinery in proposed reforms.

“What we need is greater flexibility for farmers to repair their equipment like what other countries have achieved for their farm sector,” Mr Mahar said.

“We haven’t been able to land any such arrangements so far.

“Farmers across Australia know all too well the cost of equipment downtime; when machinery is out of action during harvest, it costs time and money.

“We’ve been pursuing the right to repair to give farmers greater flexibility to use a suitably qualified repairer of their choice without fear of voiding warranties and travelling long distances, or waiting excessive periods, to access supplier repairers.”

The NFF’s Right to Repair Taskforce, a collective of commodity councils and state farming organisations, has been pushing for policy changes to address these issues.

“We are encouraged by Treasurer Chalmers’ comments signalling a focus on right to repair, but want to see a firm commitment this will include agricultural machinery.

“This move would not only align with the recommendations from the Australian Competition and Consumer Commission, Productivity Commission and right to repair academics, but would also bring Australia in line with our international competitors such as Canada and the state of Colorado in the United States, where right to repair is now law.”

The NFF also acknowledges recent comments from Assistant Minister for Competition Dr Andrew Leigh, recognising R2R issues can put farmers under real financial pressure.

“We support the government making a firm commitment to include agricultural machinery in a right to repair and stand ready to work with them to achieve that.

“This is a practical and sensible solution that will support farmers, boost the farm sector’s productivity and level out the playing field with our international competitors.”

GrainGrowers has also welcomed Mr Chalmers’ announcement of R2R being part of a broader $900-million aimed at boosting Australian efficiency generally.

“When agricultural machinery breaks down, it’s more than an inconvenience, it’s a significant financial loss for growers,” GrainGrowers CEO Shona Gawel said.

“Currently, restrictive repair rules limit growers’ choices, making them feel less like owners of their machinery and more like renters.

“This can delay critical repairs, impacting productivity and profitability.”

GrainGrowers said agricultural machinery R2R should be included in the proposed package to ensure growers have a choice of repairer, as is currently the case for light vehicles.

GrainGrowers said this choice for machinery owners will improve efficiency and productivity in grain and broader agricultural regions, and create new jobs and businesses.

“With the accessibility and cost of parts and labour in the agricultural machinery space seeing little improvement in recent years, it is essential that the sector keeps pushing this agenda forward.”

Source: TMA, NFF, GrainGrowers