Some potentially big news snuck through over the weekend. John Deere, the company that makes some of the most widely-used equipment in agriculture, signed a memorandum of understanding with the American Farm Bureau Federation that appears to clear the way for farmers to make repairs to their own machinery.
There’s reason for stopping short of declaring this a complete victory for those who have long urged the manufacturer to observe a “right to repair” and allow customers to fix equipment. Deere fought long and hard against exactly that, and the memorandum says farmers will be allowed to buy diagnostic tools and manuals. Given the complexity of modern equipment, those are essential.
But they don’t guarantee the actual ability to repair combines, harvesters, or other farm equipment. As anyone who has ever lived on a budget knows, the theoretical ability to make a purchase and the financial wherewithal to do so are different things. If the tools and books are priced out of reach, or if the process of gaining them is too onerous, farmers could still be left hanging.
What does Deere gain from the agreement? The American Farm Bureau Federation won’t push for state or federal laws that guarantee consumers’ right to repair products they’ve purchased. New York has already enacted such a law, and other states are considering similar action.
Farming is different from what it was 50 years ago, when farmers could generally make basic repairs to their tractors. The biggest change is, as with almost everything else, technology. Where keeping rows in the field straight once depended on a good eye and impressive focus, a modern piece of equipment can use a GPS system to achieve the same thing. It’s easier, probably more accurate for most people, and it’s definitely more efficient. But it’s also complex.
That complexity is what Deere pointed to for years in requiring farmers to have authorized mechanics make repairs. That gave the company a strong say in where repairs could be made and who could do it, even long after the final payment was made.
Zippy Duvall, the AFBF president, released a statement calling farm equipment “a major investment.” That’s an understatement. A combine can cost anywhere from $100,000 to $500,000, according to Charter Capital, which handles equipment financing. The company put the price tag for Deere’s combines at a minimum of $200,000.
Duvall said farmers’ ability to choose where repairs are made and the ability to make repairs themselves will help rein in costs. That could be good news, and not just for the farmer. Lower costs from the field might lower consumer prices. Given the thin margins for many farmers, though, this could just as easily go into providing them with a bit of a financial buffer.
While the headlines for the last few days have focused on farm equipment, this fundamental issue isn’t unique to agriculture. Apple has created a self-service program allowing their customers to repair iPhones and computers. Other companies are under pressure to do the same. And, frankly, we think that’s appropriate.
When you buy a product, it does create a relationship with the company that produced the product. Most electronics and durable goods have a warranty period. Prohibiting repairs is a means to bind the consumer to the company in a longer manner. It should be up to consumers whether their relationship with the company endures beyond that warranty, not to a corporation that has already made their profit off the product.
There are occasional cases where authorized repairs are the only reasonable option. We’re not sold on the idea of a DIY repair kit for a pacemaker. But those are the exceptions. The rule should be that people can make repairs, or take items to someone who can, at their own discretion.
We get the instinct at work here. There’s considerable incentive for allowing only proprietary repairs. In-house repairs can be lucrative. But they should not be a compulsory part of a purchase. The recent memorandum is a step in the right direction. We just hope it actually plays out the way the wording suggests it should.
