Benefits of the Farm Implements Act

(Note: The term "farm implement" covers all machinery and equipment designed and used for agriculture or horticulture; it includes systems such as milking, feeding and ventilation systems. EXCLUDED are farm implements costing less than $3,500, tractors under 20HP, lawn & garden equipment, vehicles and farm implement tires.)

The Act provides the following benefits to farmers, dealers and distributors:

Benefits for farmers, dealers and distributors:

• A complaint resolution service to mediate disputes between farmers, dealers and manufacturers.
• Hearings (by the Agriculture, Food & Rural Affairs Appeal Tribunal) to rule on disputes that are not resolved by mediation. Tribunal hearings provide farmers, dealers and distributors with a forum which is considerably less expensive, time-consuming, or formal than the courts, and is more knowledgeable about farm implements and agriculture. Farmers, dealers and distributors are all represented on the Tribunal.
• Consultations between farmers, the industry and the ministry to address broad industry concerns regarding farm implements (e.g. safety, repair cost estimates, inadequate standards, exclusivity clauses in dealer/distributor contracts, establishment of standard requirements requested for dealerships, leasing proposals).
• A forum for the development of cooperative and constructive relations between farmers, dealers, distributors, manufacturers and government on farm implement issues.

Specific to farmers:

• Warranty protection for all new farm implements costing over $3,500.
• Provision for the return of defective new farm implements.
• Insurance that new farm implements will perform according to the manufacturer’s specifications.
• 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.
• Requirement that new tractors are sold with roll-over protection.
• Supply of all spare parts for ten years after the purchase of a new farm implement.
• Supply of emergency spare parts within three working days.
• Recourse for farmers if farm implement repairs done by dealers are unsatisfactory.

Specific to dealers:

• Provision for the return of all new inventory to distributors on termination of a dealer/distributor contract.
• Delineation of responsibilities between dealers and distributors on issues of defective new farm implements, warranties and supply of regular and emergency spare parts.
• Standard farm implement safety requirements, established in law, to reduce the risk of lawsuits against dealers arising from farm implement accidents.

Specific to distributors:

• As a respected impartial arbitrator, the ministry saves manufacturers and distributors the cost, in terms of both finance and public image, of paying settlements solely for the preservation of good public relations.
• Standard farm implement safety requirements, established in law, to reduce the risk of lawsuits against distributors arising from farm implement accidents.

Please note that the benefits listed above are subject to conditions as established in the legislation.

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