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Whether you’re a leading edge farm technology pro or you’re a bit late to the ag tech party, there’s no time like the present to invest in all things digital.
There’s little doubt the agriculture sector is using new technology to its advantage to up its efficiency and productivity game. That looks set to continue following a $1 billion technology investment boost announced in the Federal Budget earlier this year.
From July, farms and other agribusinesses with an annual turnover of less than $50 million will be able to invest in all things digital – from upgrading the farm internet to buying GPS gear – with a 120% tax deduction up to $100,000 per year.
As Sales & Marketing Manager Andrew (Wattie) Watt explains, the tax deductions will apply to most H&P customers.
“Essentially producers who purchase new equipment or activate existing equipment and spend up to $100,000 per year will be eligible for a 120% tax deduction. The threshold is an annual turnover of $50 million, which will encompass the majority of farmers we service. Since the announcement, we’ve been preparing for a pretty big influx of upgrades on existing on-farm technology.
“We often find that while farmers have GPS and guidance technology on their machines that is 15 years old, they always have the latest mobile phone in their pocket. So, we like to say just like you upgrade from the old Nokia 3310, older farm technology also needs to be replaced, as the older units become less and less supported by John Deere and software updates.
“It’s also a good idea to continually invest in upgrading your tech to access more features, improve accuracy, get faster pull in times and better productivity out of the automation pieces, that the older technology simply can't provide.”
While what is defined as digital technology can be a little grey, Andrew said the H&P sales team is well versed in helping customers through some of those decisions.
“Although it improves on efficiencies, a new sprayer is not technically classed as new technology. Whereas if you were to purchase the Exact Apply nozzles or the See & Spray camera spray system on that sprayer, that would qualify because it’s improving efficiencies and productivity using technology.
“There are fact sheets on the Federal Budget website that can help people better understand what’s covered, and we will always steer customers towards tailored financial advice from their accountant if things remain unclear. But your local H&P sales rep is also across it in general terms, and we have a pretty clear line in the sand from a product perspective on what is precision ag and machine technology versus straight machinery. They can also certainly talk through delivery timing and the pressures that come with that in terms of tax deductions. Note, this information is not financial advice and it not updated.
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