The national consumer watchdog says more competition is needed to drive down the cost of servicing and repairing farm machinery.
It says that can be achieved by giving independent repairers easy access to software, tools and spare parts now tightly held by machinery manufacturers and their dealers.
As well, the Australian Competition and Consumer Commission (ACCC) says manufacturers and dealers need to be much more upfront with buyers about the terms and limitations of warranties.
This information should be detailed in a one-page transparent statement which should also set out a clear process for resolving disputes over warranty claims.
The ACCC also said warranties can limit competition by discouraging the use of independent repairers.