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flag Australian farmers face rising machinery and insurance costs, threatening sustainability and entry for new growers.

flag Rising costs for farm machinery and insurance are threatening Australia’s agricultural sector, with insurance premiums up 25% over five years and equipment values rising 30%, pushing machinery-related expenses to over 20% of growers’ income—up from 13% in 2020. flag Contractors face even steeper insurance costs, paying up to 110% more for coverage, with annual premiums for large harvesters exceeding $48,000. flag Combined with financing and operating costs, total expenses can surpass $1,900 per hour, making rates uncompetitive. flag Many contractors are scaling back or exiting, and younger farmers face growing barriers to entry. flag Industry leaders warn declining access to affordable insurance and high capital costs jeopardize future harvest capacity and long-term farm sustainability.

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