Farm leaders and machine makers in talks on historic right to repair agreement

Australian farmers are currently negotiating a behind closed doors agreement with equipment manufacturers, with moves afoot to mirror a historic US deal.

Australian farm leaders are negotiating with agricultural equipment manufacturers behind closed doors to secure a historic right to repair agreement.

The talks began in January following a landmark agreement between the American Farm Bureau Federation and John Deere’s US division that allowed American farmers to fix John Deere machinery independent of an authorised dealer.

Tractor and Machinery Association of Australia executive director Gary Northover confirmed that discussions were “well advanced” after using the “US standard” as a starting point.

The TMA is brokering the agreement with the National Farmers’ Federation on behalf of “all the major brands”.

Tractor and Machinery Association of Australia executive director Gary Northover.

Mr Northover said negotiations were currently focused on embedding safeguards into a memorandum of understanding and clarifying definitions around the right to repair and the right to modify.

“What is the definition of modification? Then what’s a modification that we support and what is not supported? What’s acceptable for farmers to repair under warranty and what needs to be repaired by the dealer?” he said.

“Essentially, our position is we fully support a farmers’ right to repair their own machines and we provide tooling and support to do that, and some farmers take advantage of that.

“Additionally, we support the role of third party repairers in the process, but what we don’t support is the right to modify.”

NFF president David Jochinke said while talks were ongoing with the TMA, the organisation was continuing to speak with government about possible regulatory options “if an MOU isn’t possible”.

National Farmers Federation president David Jochinke at Old Parliament House in Canberra. Picture: Martin Ollman

“We firmly believe when a farmer buys equipment, they own the whole piece of equipment from the tyres to the technology, so they should be able to take their equipment to a dealer of their choice or repair the machine themselves,” he said.

Mr Northover said the principal focus was to seal a deal with the NFF.

“Neither party are going to go through this process just for a rubberstamp, we are seeking to support our customers and farmers the best we can in being able to repair their equipment and maintain their productivity during harvest. These issues are important to our members as well,” he said.

The Productivity Commission recommended in 2021 that the then-Morrison government introduce a repair supplies obligation for agricultural machinery by the end of 2022.

GrainGrowers policy and advocacy general manager Zachary Whale said it was “extremely disappointing” that “little progress” had been seen since that report was delivered.

GrainGrowers General Manager of Policy & Advocacy Zachary Whale. Pic: GrainGrowers

“Given the significant investment in machinery and inadequate consumer protections afforded to growers, GrainGrowers is continuing to explore all options, including legislation to improve outcomes for our members,” he said.

It is understood that government is watching the potential development of the MOU and hoping the collaboration will resolve the issues.

Assistant Minister for Competition, Charities and Treasury Andrew Leigh was contacted for comment.