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Benefits of the Farm Implements
Act
How it protects farmers, dealers and distributors regarding new farm
machinery purchases
In Ontario, all new farm machinery purchases costing over $3,500 are
protected by law in terms of warranty, safety and parts supply. This
protection is provided by the Farm Implements Act. Purchases
of used machinery are covered in matters relating to safety, parts supply
and repairs, though they are not covered on warranty issues.
The range of farm machinery covered by the Act is vast. The
Act defines "farm implement" as "any equipment
or machinery designed and used for agricultural or horticultural use
and includes attachments." This includes farmstead equipment systems,
such as equipment for milking, feeding, ventilation, feeding, manure
handling, etc. There is no coverage for equipment with a manufacturer's
list price under $3,500, tractors 20 horsepower or less, drainage equipment,
lawn and garden equipment, and tires.
The Farm Implements Act provides the following benefits to farmers,
dealers and distributors:
Benefits for farmers, dealers and distributors:
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A free complaint resolution service is provided by the Ontario
Ministry of Agriculture, Food and Rural Affairs to mediate disputes
between farmers, dealers and manufacturers.
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Hearings (by the Agriculture, Food and 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.
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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).
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A forum for the development of cooperative and constructive relations
between farmers, dealers, distributors, manufacturers and government
on farm implement issues.
Benefits to farmers:
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Defective new farm implements can be returned for a refund, under
certain conditions.
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New farm implements are required to perform according to the manufacturer's
specifications.
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All farm machinery, new or used, must be sold with all necessary
safety shields and decals.
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Operator's manuals must be supplied with new farm implements.
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All new tractors, and all used tractors manufactured after January
1, 1992, must be sold with roll-over protection.
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For every new farm implement, spare parts must be available for
ten years.
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During season of use, emergency spare parts for farm machinery
must be supplied within three working days.
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If farm implement repairs done by dealers are unsatisfactory, there
is recourse for farmers.
Benefits to dealers:
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Provision for the return of all new inventory to distributors on
termination of a dealer/distributor contract.
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Delineation of responsibilities between dealers and distributors
on issues of defective new farm implements, warranties and supply
of regular and emergency spare parts.
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Standard farm implement safety requirements, established in law,
to reduce the risk of lawsuits against dealers arising from farm
implement accidents.
Benefits 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.
Related Links
For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca
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