Thread: Australian agri-business set to do well in the current economic conditions.

Last year was off to a good start too but then look at what didn't happen. Wait until late September around here before starting to think that this year might be better then last.

The Mid North where I work for a Ag dealer had seen 100+mm of rain over the month of April compared to 20mm same time last year.

Some who had scratched in feed, canola and hay in the 1-11/2 weeks leading up to last Friday, have seen growth already. The rain has certainly left a nice wet film on top that hopefully translates to subsurface moisture for winter.

There are a few smiling faces walking through the doors ATM and the general mood is good.

The other positive thing happening in Ag ATM is the $150K instant tax write off. Plenty of machinery getting upgraded. I have been told even our second hand holdings are pretty low.

Hope it keeps up and is a successful year for them, cause if they win, lots of people in those regional areas win.

Originally Posted by bob10

Yep, Australia sold its soul to the cheapest bidder. But I guess people buy what they can afford, in the main. I'm sure there are many reasons for that, not everyone is greedy.

All my life the position of farmers in Australia has gradually worsened, with this trend superimposed on the droughts and good years. Allowing for inflation, almost all primary produce prices have steadily gone down, while input costs have gone up, and red tape has risen to unbelievable levels.

Even fifty years ago it was possible for an individual to start from practically nothing, and be prosperous and having raised a family on the farm, and leave a going concern to his children more often than not. Today, most of the children aren't interested - they can make far more money off the farm without the responsibility and the 7/365 daylight to dark work that is needed today.

Today the 'successful' farm has to have so much money tied up that very few of them ever actually operate at a profit if the cost of capital and a reasonable wage for the farmer is accounted for. Operated by a large corporation, it can work, as a lot of the overhead can be shared.

Originally Posted by JDNSW

All my life the position of farmers in Australia has gradually worsened, with this trend superimposed on the droughts and good years. Allowing for inflation, almost all primary produce prices have steadily gone down, while input costs have gone up, and red tape has risen to unbelievable levels.

Even fifty years ago it was possible for an individual to start from practically nothing, and be prosperous and having raised a family on the farm, and leave a going concern to his children more often than not. Today, most of the children aren't interested - they can make far more money off the farm without the responsibility and the 7/365 daylight to dark work that is needed today.

Today the 'successful' farm has to have so much money tied up that very few of them ever actually operate at a profit if the cost of capital and a reasonable wage for the farmer is accounted for. Operated by a large corporation, it can work, as a lot of the overhead can be shared.

Sounds like the transport industry, with commonality being they're both price takers.

Machinery ad scams targeting farmers leaves them tens of thousands of dollars out of pocket - ABC News

Looks like the farmers should be careful spending their hard earned on machinery, as there are scams out there.

"Department of Consumer Protection WA says some WA residents had recently lost up to $45,000 through fraudulent machinery adsScammers operated across various advertising platforms including reputable online trading websites
WA ScamNet suggests not purchasing anything sight unseen and on the word of someone"

Yeah, like buying some brands of tractor....

'''Right to repair''' taken up by the ACCC in farmers''' fight to fix their own tractors - ABC News


Regards,
Tote

Originally Posted by Tote

Yeah, like buying some brands of tractor....

'''Right to repair''' taken up by the ACCC in farmers''' fight to fix their own tractors - ABC News


Regards,
Tote

During my career in the motor and machinery industries I came across several makes of luxury car and mining, construction, and earthmoving equipment where "grey market" imports were not uncommon.Some of the OE distributors would ask for the serial no, and engine no. when the owners ordered parts. If your machine was a grey import then they would refuse to sell you parts using the excuse that they did not know the specification of that machine and would not sell parts that may be incorrect. Sometimes the suggestion was made that you should approach the importer for assistance. Maybe the Trade Practices Act has scotched this practice.

Well now Tote, you have introduced a subject I have not previously considered .

As mentioned the humble old noisy Diesel engine with Armstrong gear box is no more.

Yes indeed, who does ‘ own the intellectual property”
Can the farmer “ shift historical data “
Can the farmer “back up old data”

Though it appears the lawyer in the West has a handle on the situation , but the problem still exists regarding warranty repairs and service , although I never was confronted with that ,
a new forage harvester and new offset disc in 1974 , didn’t count then.

Good topic Tote
Dave