Alberta farmers will soon be able to lease farm machinery through their banks.
John Schmeiser, executive vice-president with the Canada West Equipment Dealers Association, said changes to the act governing farm machinery are good news for farmers.
“Any time a customer has more options it’s good for the industry,” said Schmeiser.
Traditionally, farmers have bought their farm equipment outright or through some kind of financing arrangement. Over the past 10 years, more farmers have begun leasing more costly items like combines or tractors, said Schmeiser.
Read Also
Supreme Court gives thumbs-up emoji case the thumbs down
Saskatchewan farmer wanted to appeal the court decision that a thumbs-up emoji served as a signature to a grain delivery contract.
At some equipment dealerships, 35 to 40 percent of the equipment is leased to farmers and the industry expects that trend to increase.
Last September, the provincial government contacted the Canada West Equipment Dealers Association wondering if the association had concerns to proposed changes to the Farm Machinery Act, which would allow banks to lease farm equipment.
Schmeiser said the board didn’t oppose the changes because it would align Alberta with Saskatchewan and Manitoba, which already allow banks to lease farm equipment. Board members also thought it would give farmers more options and provide more competition in farm equipment financing.
Previously, if farmers wanted to lease equipment, they did so through the equipment dealers.
The Canadian Bankers Association asked the provincial government to make the changes to the act last year.
Paul Griffin with the bankers association said there is a growing market for leasing farm equipment.
“Alberta is the last province in Western Canada to deny lenders the opportunity to compete in leasing,” said Griffin.
“We think we are able to provide competition that’s good for the consumer.”
