A renewed emphasis on right to repair laws has been welcomed by industry bodies, which have urged the government to consider specific agricultural needs
Both the National Farmers Federation and Tractor and Machinery Association have welcomed renewed federal government emphasis on the much-anticipated right to repair laws.
Federal treasurer Jim Chalmers announced productivity reforms last month which would include developing a general right to repair.
Assistant minister for competition Andrew Leigh also used a speech to ABARES to raise the need for a specific agricultural right to repair, saying it would be “a good thing for the economy, businesses and consumers.”
In a broad sense, right to repair laws would enable Australian farmers to have repairs to their agricultural machinery made by independent repairers – rather than just the manufacturer’s single authorised dealer – without voiding their warranty.
“Warranties restrict the purchaser to a single authorised dealer for servicing and repairs, and tech restrictions mean independent repairers or farmers can’t access the parts, manuals and diagnostic software they need to carry out repairs,” Leigh said during the ABARES address.
“In short, farmers have few choices when buying machinery but even less choice when servicing or repairing that equipment.”
Leigh referred to the findings of Australia’s Productivity Commission, which completed an inquiry into the issue and released a report in 2021.
“[The Productivity Commission] agreed restrictions harm farmers through higher repair prices, reduced access and choice and greater financial risks from repair delays,” he said.
“The Productivity Commission recommended the government intervene by introducing a repair supplies obligation on agricultural machinery.
“This would require manufacturers to provide access to repair information and diagnostic software tools to machinery owners and independent repairers on fair and reasonable commercial terms.”
Treasurer Chalmers also used a speech to Australian Business Economists to announce a federal government-led development of a general right to repair.
The NFF’s Right to Repair Taskforce – consisting of commodity councils and state farming organisations – has been pushing for policy changes to address these issues.
NFF CEO Tony Mahar welcomed the treasurer’s announcement but urged the government to include agriculture specifically in the reforms.
“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,” he says.
“What we need is greater flexibility for farmers to repair their equipment like what other countries have achieved for their farm sector. 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 announcement was also welcomed by the Tractor and Machinery Association, with executive director Gary Northover saying farmers and members will be eagerly awaiting the benefits of these commitments.
“The TMA has already been working hard to advance collective industry efforts to join our global counterparts in providing right to repair for farmers and making great inroads, with members who are already servicing the right to repair needs of farmers,” he says.
“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 right to repair for farmers that protects incomes, improves productivity and ensures safe operation of agricultural equipment.”
Northover also says the availability of skilled workers to fill in-demand jobs at regional and rural dealerships was one of the biggest barriers to productivity for the sector.
“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,” he says.