Planned amendments to Saskatchewan’s warranty protection legislation got two thumbs up from agricultural equipment manufacturers and dealers last week.
The Prairie Implement Manufacturers Association and Canada West Equipment Dealers Association said the amendments to the Agricultural Implements Act are long overdue and will offer more protection for farmers.
The amendments will bring Saskatchewan into line with Manitoba and Alberta.
The legislation will change warranty provisions so they apply from the date of first use of the equipment rather than date of delivery.
“It makes a lot of sense,” said CWEDA executive vice-president John Schmeiser. “We do sell a fair bit in December for tax purposes.”
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The legislation also applies to leased equipment.
PIMA president Jerry Engel said more farmers are leasing equipment these days.
“A lot of our farmers have been leasing and will continue until that bumper crop is in the bin,” he said.
The act also includes new buy-back provisions.
Manufacturers must now take back things such as computers, software and service manuals, but at only 85 percent of their value. The amendments will increase that to 90 percent if the dealer cancels the contract and 100 percent if the manufacturer cancels.
Schmeiser said this provision is important to dealers because manufacturers often require that they buy certain tools or software to work on a particular line of equipment.
One change CWEDA had asked for that the government did not include is warranty reimbursement legislation. Some manufacturers do not reimburse dealers at their advertised shop rate for work done under warranty.
For example, Schmeiser said farmers might be charged $65 or $70 an hour for non-warranty work, but a manufacturer might reimburse the dealer for warranty work at only $45.
“We think it’s wrong that the farmers have to subsidize the manufacturers,” he said.
Seventeen American states have passed reimbursement legislation that binds manufacturers that sell to those states.
In Saskatchewan, manufacturers and dealers have agreed to discuss this concern, Schmeiser said.
Engel said the association was pleased with the amendments.
The group appreciated that the agricultural implements board consulted with a variety of organizations, including farm organizations and financial institutions.
The legislation hadn’t been changed since 1979. Manitoba updated its act in 1999 and Alberta followed in 2001.
