Farm Machinery
Your Rights and Responsibilities

Questions & Answers on the Farm Implements Act and Program

Table of Contents

1. What the Act does.
2. What farm implements are covered?
3. How does the Act benefit me as a farmer?
4. What protection is provided in new machinery purchases?
5. How about leased equipment?
6. What about spare parts?
7. How does the Act help farmers who have complaints about their machinery?
8. Are all machinery disputes covered?
9. What good is a Tribunal hearing?
10. Who sits on the Tribunal?
11. What about the Farm Implements Board?
12. I am a dealer. How does the Act benefit me?
13. What dealer concerns have been addressed through the Act?
14. Do manufacturers and distributors benefit from the Act?
15. How does the Act affect the sale of farm implements?
16. What are the minimum warranties established by the Act?
17. Who is responsible for warranties?
18. What is the role of the dealer concerning warranties?
19. What about the supply of parts?
20. What happens if my farm implement breaks down during the season of use and parts are not readily available?
21. What happens if the distributor or dealer does not supply the parts within the time specified?
22. What should I do if my new farm implement does not perform satisfactorily?
23. What if my dealer has gone out of business?
24. How does the Act improve the safety of the farm implements on the market?
25. What about the safety of used farm implements?
26. Do operator's manuals have to be provided for used farm implements also?
27. Can I buy a used farm implement without shields or decals?
28. What about the roll bars on tractors?
29. Must dealers and distributors be registered?
30. What is the procedure for filing a complaint under the Act?

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What the Act does

The Farm Implements Act was established at the request of farmers and dealers, to protect their substantial investments in farm machinery and dealer inventory.

The Act enables farmers to have confidence in the quality, reliability and safety of the new farm machinery they purchase or lease, and in the service they can expect from their dealers and manufacturers. It gives dealers peace of mind that in the event of termination, they will not be left with an expensive stock of inventory. It saves manufacturers from having to pay off expensive settlements in machinery disputes simply to preserve good public relations. It promotes cooperation and good relations between farmers, dealers and manufacturers.

The Act is administered by the Resources Management branch of the Ministry of Agriculture and Food (OMAF). Discussions are held with farmer and industry organisations before decisions are made on substantial changes in policy. The ministry develops and enforces safety standards and regulations, to improve machinery safety and help reduce farm fatalities and injuries. It also mediates disputes between farmers, dealers and distributors.

If mediation fails, disputes may be arbitrated through hearings of the Agriculture, Food & Rural Affairs Appeal Tribunal. Each case is heard by a panel of three people, selected from the farmers and farm implement industry representatives on the Tribunal.

This new process replaces the operations of the Ontario Farm Implements Board (OFIB), which was amalgamated into the Tribunal by the Red Tape Reduction Act in December 1999.
This booklet provides answers to some of your questions about the Act and the farm implements program. For more specific information, please refer to the Farm Implements Act and Regulation. They may be obtained from Publications Ontario, 50 Grosvenor Street, Toronto, ON M7A 1N8, (416) 326-5300 or toll free 1-800-668-9938.

The legislation is available from the following website:
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90f04_e.htm

The Regulation can be found at
http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900369_e.htm

For more information please contact The Agricultural Information Contact Centre at 1-877-424-1300.

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What farm implements are covered?

The Act covers any equipment or machinery designed and used for agriculture or horticulture. Also included are farmstead equipment systems, as used for milking, ventilation, feeding, manure handling, etc. It does not cover:

• farm implements (or systems) with a manufacturer's list price that is less than $3,500;
• tractors developing 20 horsepower (15 kW) or less;
• motor vehicles as defined in the Highway Traffic Act;
• lawn and garden equipment;
• tires.

How does the Act benefit me as a farmer?

The Act provides a range of benefits for farmers. These can be classed under three headings:

• farmer protection in new machinery purchases;
• resolution of complaints about farm machinery;
• resolution of farm machinery issues affecting all farmers.

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What protection is provided in new machinery purchases?

• Warranty protection for all new farm implements costing over $3,500.
• Provisions for the return of defective new farm implements.
• Requirement that new and used farm implements are sold with all necessary safety shields and decals.
• Requirement that new farm implements are sold with operator’s manuals.

How about leased equipment?

A person who leases farm implements has the same protection under the Act as one who purchases farm implements.

What about spare parts?

Under the Act,

• Spare parts must be available for ten years after the sale of a new farm implement.
• Emergency spare parts (parts required for a machine during its season of use) must be supplied within three working days.

How does the Act help farmers who have complaints about their machinery?

The Act gives farmers:

• A system of redress if implement repairs done by dealers are unsatisfactory;
• A complaint resolution service to mediate disputes between farmers, dealers and manufacturers;
• Tribunal hearings to rule on disputes that are not resolved by mediation.

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Are all machinery disputes covered?

Mediation is provided for all disputes involving issues covered by the Act. These include performance and warranty of new machinery, safety, parts supply, repairs, return of dealer inventory on termination of dealer/distributor contracts. Not included are disputes about warranty on used machinery, or other issues not covered by the Act.

What good is a Tribunal hearing?

Tribunal hearings provide farmers with a forum which is considerably less expensive, time-consuming, or formal than the courts, and is more knowledgeable about agriculture and farm implements.

Who sits on the Tribunal?

The Agriculture, Food & Rural Affairs Appeal Tribunal consists of farmers representing all aspects of agriculture in the province. Members of the OFIB have been appointed to the Tribunal. For farm implement cases, the Tribunal will ensure industry representation by maintaining among its membership: a dealer, a wholesaler, and one manufacturer each of small and large farm implements. This is similar to the industry representation on the OFIB.  

What about the Farm Implements Board?

Under the Red Tape Reduction Act passed in late December 1999, the OFIB was amalgamated into the Agriculture, Food & Rural Affairs Appeal Tribunal. The hearing functions of the Board were assumed by the Tribunal, while the regulatory, policy-making and administrative functions were transferred to the ministry. When considering substantial policy changes, the ministry holds discussions with farmer and industry groups. These changes to the OFIB were part of a Reorganization Plan, developed in consultations between farmer and industry groups and the ministry.

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I am a dealer. How does the Act benefit me?

Dealers get these benefits:

• Provision for the return of new inventory to distributors on termination of a dealer/distributor contract;
• Standard farm implement safety requirements to reduce the risk of lawsuits against dealers arising from farm implement accidents;
• A complaint resolution service to mediate disputes between dealers, farmers and manufacturers;
• Tribunal hearings to rule on disputes that are not resolved by mediation;
• A forum for the discussion and resolution of broad dealer concerns regarding farm implements.

What dealer concerns have been addressed through the Act?

• Safety requirements for used farm implements sold by dealers;
• Legislative proposals on farm implement repairs;

Through ministry consultations, the Act provides a vehicle for the development of cooperative and constructive relations between dealers, distributors, manufacturers, farmers and government on farm implement issues.

Do manufacturers and distributors benefit from the Act?

Manufacturers and distributors also benefit from the complaint resolution service. Apart from the savings in legal costs and time associated with court cases, manufacturers and distributors get an additional benefit. As a respected impartial arbitrator, the ministry saves manufacturers and distributors the financial and public image cost of paying settlements solely for the preservation of good public relations. Through ministry consultations, manufacturers and distributors have a forum for the discussion and resolution of broad industry concerns such as farm implement safety, leasing, exclusivity clauses, etc.

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How does the Act affect the sale of farm implements?

• the description of the farm implement and any trade-in;
• the purchase price and the trade-in allowance;
• the date of delivery;
• the names and addresses of the purchaser, dealer and distributor;
• the nature and duration of the warranties;
• other information as required by the Act.

What are the minimum warranties established by the Act?

Every new farm implement is warranted to be properly constructed and to perform to manufacturer's specifications. Also, a new farm implement is warranted to develop the power stated in the sale agreement. These warranties are for the following periods:

• for tractors, the lesser of one year or 1,000 hours of operation;
• for combines, the lesser of one year or 500 hours of operation;
• for all other farm implements, one year;
• for new repair parts, an implied warranty of 90 days from the date of purchase, that parts will be free from defects.

Distributors and manufacturers may and often do offer longer warranties, especially for tractors and combines.

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Who is responsible for warranties?

The distributor is responsible for honouring the warranties relating to power and quality on implements and parts.

What is the role of the dealer concerning warranties?

The dealer carries out warranty work with the approval and direction of the distributor.

What about the supply of parts?

The Act requires that for every new farm implement sold, parts must be available for 10 years from the effective date of the sale agreement.

What happens if my farm implement breaks down during the season of use and parts are not readily available?

In such a case, the purchaser must notify the dealer in writing and the dealer must order the repair parts immediately from the distributor. The repair parts must be made available at the dealership within three working days of the order, unless delivery cannot be made because of circumstances beyond the distributor's control.

What happens if the distributor or dealer does not supply the parts within the time specified?

If this happens, the distributor or dealer must provide a substitute farm implement to the purchaser at half the normal rental rate.

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What should I do if my new farm implement does not perform satisfactorily?

A defective new farm implement can be returned to the dealer if the following conditions are met:

• The defect must be found within the first 10 days or 100 hours of actual use, in the 12 month period following delivery of the unit;
• The purchaser must notify the selling dealer in writing within 10 days of finding the defect;
• The dealer or distributor has four working days to get the implement working to specifications. If this fails, then the purchaser must be provided with a satisfactory substitute;
• The dealer or distributor has an additional 14 working days to get the implement working to specifications. If not, then the distributor must either replace the defective implement or refund the full purchase price.

What if my dealer has gone out of business?

Written notice of the defective implement should be sent to the Farm Implements Act Program, Resources Management Branch, OMAF, and the distributor will be promptly informed.

How does the Act improve the safety of the farm implements on the market?

Farm implements must be equipped with shields and/or guards to protect people from contact with components that can cause injury. This does not apply to components which must be exposed for proper function. Before a new implement is delivered to the purchaser, the dealer must ensure that all safety decals, shields and guards are on the implement, and an operator's manual is provided. The dealer must have the purchaser sign written confirmation that these requirements have been met. The Act provides for the establishment of safety standards and regulations, and for their enforcement.

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What about the safety of used farm implements?

Used farm implements sold by dealers must also be equipped with safety shields and/or guards. Generic decal packages have been developed by the industry for all major types of farm implements (tractors, combines, balers, harvesters, etc.). These must be put on used farm implements if original decals are not available.

Do operator's manuals have to be provided for used farm implements also?

If operator's manuals are available for the used farm implement being sold, one must be provided. Generic safety manuals are available for certain classes of farm implements such as tractors and loaders, and these are to be supplied in the absence of operator's manuals. If neither operator's manuals nor generic safety manuals are available, the used farm implement can be delivered without one.

Can I buy a used farm implement without shields or decals?

A used farm implement may be sold without safety shields, guards or decals only if the purchaser signs a statement that the implement will be used for parts only.

What about roll bars on tractors?

Roll-over protective structures (ROPS) are required on all new farm tractors sold in the province. Used tractors sold by dealers must also be equipped with ROPS if the tractor was manufactured after January 1, 1992.

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Must dealers and distributors be registered?

To operate in the province, all dealers and distributors must be registered with the ministry.

What is the procedure for filing a complaint under the Act?

Requests for dispute resolution can be made by phone, fax, email or in writing. Contact the Agricultural Information Contact Centre to obtain the current Farm Implements Program contact information. Complaint forms are available at farm implement dealerships, from the Farm Implements Act Program at the Environmental Management Branch of the ministry, or through the ministry website. Completed forms, along with any supporting documents, should be mailed to the ministry at the address below:

The Farm Implements Act Program
Environmental Management Branch
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 3rd Floor
Guelph, ON N1G 4Y2

Related Links

• Farm Implement Act Program

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