Ag machinery sector unites on ‘Right to Repair’

In response to the ACCC and the Productivity Commission’s latest inquiry into farmers’ fair access to servicing and repairs for their machinery, the Tractor and Machinery Association of Australia (TMA) has released a joint statement with its members expressing their support for steps to be taken to make it easier for farmers to fix their own machines.

The ACCC and Productivity Commission have both recently concluded that agricultural machinery buyers would benefit from more independent competition in servicing and repair markets, and have provided recommendations to give farmers more flexibility with repairing and more clarity on warranty terms and consumer guarantees.

In TMA’s first Statement of Principles on this matter, the organisation outlined its and its members’ agreement in helping farmers gain better access to machinery repairs through information sharing.

“Our members are committed to supporting farmers through provision of high quality and safe agricultural machinery that reduces downtime, maximises productivity and minimises environmental impact," said TMA Executive Director, Gary Northover.

“That includes providing farmers and repairers with training, diagnostic information and support, plus information on service, parts, operation and safety.

“The Statement of Principles reinforces the industry’s commitment to industry changes that improve machinery without adding additional cost or putting safety, performance or environmental standards at risk.”

However, TMA expressed concern with certain recommendations the ACCC has put forward that might produce undesirable outcomes for consumers and also affect the economy and viability of not only the farm machinery industry but also rural and regional Australia.

Some recommendations that the ACCC and Productivity Commission proposed include a requirement for manufacturers to include additional mandatory warranty text clearly stating that entitlements to consumer guarantees under the consumer law do not require consumers to use authorised repair services or parts.

The Productivity Commission also canvassed but not yet recommend law that would prevent manufacturers from voiding warranties if a consumer used an independent repairer.

"Agricultural machinery is often highly complex and requires extensive training and experience to repair or service,” Northover said.

"These recommendations will have unintended consequences for the Australian agriculture industry by creating safety, warranty, and environmental concerns that will affect dealers and their customers.

“We support the right for farmers to carry out their own repairs or maintenance, but that does not mean a right to modify. These machines are often complex and set up to operate safely while optimising performance. Modifying them creates significant safety risks.”

“In addition, agricultural machinery and tractor dealerships operate all over Australia, largely in rural, regional and remote areas. These dealerships are a crucial part of their local economies, as employers, providers of traineeships and education, supporters of community initiatives."

Northover added the TMA and its members are concerned that the recommendations, if implemented in their current form, will result in repairs being done by inexperienced or untrained personnel which may lead to machines not being fixed correctly.

“That can in turn lead to increased downtime and other breakdowns, which create knock on effects that can be expensive to remedy,” he said.

“We urge the ACCC and Productivity Commission to work with our industry to develop workable solutions that won’t create safety, warranty or environmental issues, or adversely affect rural communities.”