Gerri the NVT Guru reports that growers in Kwinana West have 66% of their gross farm income tied up in machinery. High hours and rising maintenance costs are the main reasons to replace equipment, though new technology like larger seeders can also trigger upgrades.
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We're looking at the Kwanana west region and looking at the amount of investment in on farm machinery and plant relative to the gross income potential of each of the farms. Just for the Kwinana west region, the analysis we've done in that Kwinana west region would indicate that about on average, growers have about 66% of their gross farm income invested in machinery on farm. And if we look at the split of seeding, spraying and harvesting, you're looking at a range for that area that seems to vary heading north and south. So there are some regional variations in investment splits. So our Kwanana West RCSN project has found the key trigger points for machinery replacement are typically high machinery hours and or increasing maintenance costs. That does vary. Sometimes cedars, for example, are also likely to be changed over where there's improvements in technology, size or features on the seeder.