The act

The Farm Implement and Dealership Act helps protect the investments farmers make in their machinery. This legislation establishes minimum warranty requirements, outlines the required availability for repair parts, and creates a process for resolving matters involving agreements and implement performance. This legislation also guides the creation of agreements between dealers and distributors. The Farmers’ Advocate Office (FAO) manages dealer and distributor licensing.

Regulation

The Farm Implement Regulation describes the farm implements exempted from the act, the licensing process and associated fees, and governance related to the Farm Implement Board (FIB).

Coverage

The Farm Implement and Dealership Act establishes the following protection:

  • a minimum 1-year warranty term for new farm implements
  • the warranty, conditions and timelines in which repair parts must be provided
  • no person shall conduct business as a dealer without holding a dealer licence
  • no person shall conduct business as a distributor without holding a distributor licence
  • licences pertaining to dealers and distributors of farm implements must be renewed annually

Under the act, a farm implement means any implement, equipment, engine, motor, machine, combine, tractor or attachment used or intended for use in farming operations. It does not include anything excluded from the definition of a farm implement by the regulations.

The following farm implements are not covered by the act:

  • out-of-province purchases, including direct purchases from dealers or distributors in other provinces
  • purchases from auction sales – this includes new farm implements sold by dealers at public sales
  • purchases from farmers – even if the implement is new
  • farm implements with a retail selling price of $7,000 or less
  • motor vehicles as defined in the Traffic Safety Act
  • lawn and garden equipment
  • tractors, and their attachments, with a net engine power capability of 30 hp (22.35 kw) or less
  • truck boxes and hoists
  • off-highway vehicles as defined in the Traffic Safety Act
  • snow plows and snow blowers
  • trailers and equipment carriers

Sale agreements

The dealer must use a sale agreement that is acceptable under the Farm Implement and Dealership Act (see Form G of the Farm Implement Regulation for a sample sale agreement). A person who has signed a sale agreement is not bound to the agreement until:

  • the agreement is signed by the dealer or by a representative authorized by the dealer, or
  • when the purchaser accepts delivery of the implement under the agreement

whichever occurs first.

All farm implement sales, new or used, must be written in proper form and contain:

  • an address for the dealer and distributor
  • the nature and duration of all warranties
  • a description of the farm implement including the serial and model numbers

If 2 implements are purchased, the agreement must show a purchase price for each implement, as well as the purchase price of any attachment or accessory.

Note that the Direct Sales Cancellation Act does not apply to the sale of farm implements.

For more information see:

Farm Machiner in Field at Sunset

Notice of Failure to Perform

Purchasers can take these steps to have farm equipment repaired, replaced or refunded if it does not perform as intended.

Learn more

Contact

Connect with the FAO:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 310-FARM (3276)
Email: [email protected] or Ask us a question online

View all FAO contact information

Mailing address:
J.G. O'Donoghue Building
7000 113 Street
Edmonton, Alberta  T6H 5T6

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