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Abstract
Besides the purchase of additional land, the purchase of cropping machinery is
perhaps the most important and expensive decision a farmer in the grains industry
may make. This paper shows how various on-farm technical factors can influence
levels of investment in crop sowing machinery. The paper examines the effect on
investment in crop sowing machinery of discontinuities in sowing opportunities,
varietal portfolios, soil type diversity and tillage technology. For the case of risk
neutral management a simple model of profit from crop production is used to
illustrate how these factors influence investment in crop sowing machinery. Work
m progress is described that illustrates the model using farm survey data from the
eastern whetbelt of Western Australia.