Saskatchewan’s farm equipment manufacturing industry will be at risk if major manufacturers force dealers to drop implements made by smaller companies, said the Saskatchewan Party’s agriculture critic Bill Boyd last week.
Boyd told the legislature that companies like John Deere and Case IH want their dealers to sign contracts preventing them from selling equipment made in the province by companies like Bourgault, Brandt, Degelman, Schulte and others.
“That’s bad news for dealers, that’s bad news for farmers and that’s bad news for our excellent farm equipment manufacturing industry in this province,” Boyd said.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
He said immediate action is needed, as some dealers must sign the new contracts by Dec. 31.
He introduced private member’s legislation that would prevent major manufacturers from forcing dealers into exclusive contracts.
Saskatchewan agriculture minister Dwain Lingenfelter said the government may introduce its own legislation this week, which could then be passed before Dec. 31.
“We want to make sure that the interest of all dealers and all manufacturers in the province is in fact dealt with, and that we’re not picking and choosing as to who wins and loses on this issue,” Lingenfelter said.
