Legislative amendments that allow farm implement dealers to carry competing equipment lines took effect Oct. 1 in Manitoba.
The amendments to the province’s Farm Machinery and Equipment Act also prohibit a manufacturer from terminating a dealer’s agreement without cause and a court order.
“While the intent of the amendments is to address dealer purity issues, we believe the changes will benefit the farm machinery industry and agriculture as a whole,” said Manitoba agriculture minister Rosann Wowchuk in a news release.
Wowchuk said the legislation should mean improved implement sales. It will assist dealerships who want to give producers a greater choice of product lines and competitive pricing. The minister also expects the amendments to make the bargaining power between manufacturers and implement dealerships more balanced.
Manufacturers ruled
Before the amendments, some large manufacturers could terminate a dealer’s agreement without just cause, and many agreements prohibited a dealer from carrying competing lines of equipment.
The amended act includes a provision that allows the dealer or manufacturer to request the appointment of a mediator in an attempt to resolve disputes.
