Event Recap | Machinery Investment workshops hit the mark across EP
If only machinery investment was as simple as playing Farming Simulator.
You harvest your paddock of wheat. A flour mill owner casually strolls up your driveway, offering you the current value of gold for your tonnage. And a shiny new piece of machinery miraculously appears in your shed the very next day.
In more recent years, if machinery purchasing was a game of Monopoly, I would have sold all of my hotels. Mortgaged Mayfair three times. And been sent directly to jail – don’t even think about collecting $200 on the way past Go.
Reality is we need to channel our inner Happy Gilmore, and find our “Happy Place” that exists somewhere in the middle. And how can we make this happen you ask? Sharpen our pencils, understand our numbers, and plan ahead.
Over five packed sessions last week, AIR EP packed the snacks box to deliver a series of Machinery Investment Workshops in Smoky Bay, Port Kenny, Cowell, Port Neill and Coffin Bay — and the response from growers and industry couldn’t have been stronger.
With Port Kenny and Port Neill fully booked and waitlists in place, AIR EP staff were overwhelmed by the level of support from local farming businesses, advisors, and industry representatives.
“The level of engagement across all five locations shows just how important this topic is right now. We’re grateful for the trust growers place in AIR EP to bring practical, relevant conversations into the room,” said AIR EP Executive Officer, Naomi Scholz.
Workshops were facilitated by farm business consultant Peter Newman, Planfarm and local agronomy consultant Andy Bates, Bates Ag Consulting, combining strong financial benchmarking with real-world farming context, practical tools and plenty of interactive discussion.
So why does this content matters for farm businesses?
As machinery costs continue to rise, seasons remain unpredictable, and labour increasingly hard to secure, the workshops focused on helping growers remove emotion from machinery decisions. Participants were instead encouraged to focus on building simple rules, ratios and replacement plans that align machinery investment with business performance — not just comfort or convenience.
“It’s not about never buying machinery — it’s about knowing when it actually makes sense for your business.” – EP farmer.
Key messages from the workshops
- Operating efficiency is king
- Aim to spend ≤65 cents on operating costs to make a dollar
- For many EP businesses, recent averages have sat closer to ~69%, highlighting room for improvement
- Set clear cost targets (as a % of average annual income):
- Finance costs: <10%
- Machinery costs (including depreciation): <10%
- Personal costs: <10%
- Machinery investment should match income
- Aim for a 1:1 machinery value to average annual income ratio
- As a rule of thumb: If your machinery is worth $1 million, it should be supported by ~$1 million in average income
- Break the rules only when the numbers stack up
- Should only apply if the machinery saves you money, or makes you money
- For example, investing in technology or equipment that saves inputs, reduces labour pressure or increases long-term productivity (e.g. camera sprayers, soil amelioration, section control) may justify bending the rules – but do your numbers first!
- Buying gear because it’s new, comfortable or shiny is not a reason to break the rules
A hard truth – “You can have a SwarmBot or a Bar Crusher — but not both!”
So what are farmers planning to do with this knowledge?
- Developing a Plant & Equipment Replacement Schedule
- Reviewing machinery-to-income ratios before making future purchases
- Benchmarking operating efficiency using accounting software
- Rethinking funding methods (HP vs cash vs term debt)
- Looking for efficiency gains from existing machinery before upgrading
One grower stated the habits of many: “I’ll stop making decisions on the back of an envelope and actually write the plan down.”
Photo: Coffin Bay participants when asked “Did you get something out of today?”
Resources available
GRDC RiskWi$e Eyre Peninsula project reports and tools
GRDC Machinery investment and Replacement for Australian grain growers
GRDC Fact Sheet: Cost effective investment in machinery
GRDC Fact Sheet: Investing in a sprayer guidelines
GRDC Fact Sheet: Determining the optimum level of investment in harvest machinery
GRDC Fact Sheet: Farm business management: Machinery investment and costs
Thank you
AIR EP sincerely thanks Peter Newman and Andy Bates for their engaging facilitation, practical insights and willingness to challenge thinking while keeping the sessions light, grounded and relevant.
We also acknowledge the fantastic support from all participants who contributed to the discussion and learning environment.
This project is proudly supported by the GRDC-funded RiskWi$e program, with supplementary support from the Regional Development EP Small Business Fundamentals Program’s drought support activities.
