Overview

In response to a joint request from farmers and farm machinery dealers, the Government of Ontario established the Farm Implements Act, 1990.

The purpose of the act is to improve farm machinery safety and protect the large investments that farmers and dealers make when purchasing or leasing farm machinery.

The act:

  • gives farmers confidence in the quality, reliability and safety of new farm machinery when purchasing or leasing, and in the level of service they can expect from dealers and manufacturers
  • ensures dealers that if the dealership contract ends, they are not left with expensive inventory
  • saves manufacturers from having to make expensive settlements in machinery disputes just to preserve their public image
  • promotes co-operation and good relations between farmers, dealers and manufacturers

About the law

The Farm Implements Act, 1990 is administered by the Ministry of Agriculture, Food and Rural Affairs (OMAFRA). The ministry establishes and enforces safety standards and regulations to improve machinery safety and reduce farm fatalities and injuries.

The ministry also helps resolve disputes between farmers, dealers and distributors. If conflict resolution fails, the parties can apply to the Agriculture, Food and Rural Affairs Appeal Tribunal for a hearing. The tribunal panel hearing cases includes farmers and industry representatives.

For more specific information, refer to the Farm Implements Act, 1990 and its 2 regulations, O. Reg. 369 — General and O. Reg. 123/06 — Dealership Agreements.

Definition of farm machinery

The terms "farm machinery," "farm equipment" and "farm implement" are interchangeable. The act refers to all of them as "farm implements" and are defined as any equipment or machinery designed and used for agriculture or horticulture.

This includes:

  • farmstead equipment systems, such as milking, ventilation, feeding or manure handling systems
  • precision agriculture equipment, such as precision planting, yield monitoring and auto-steer equipment

It does not include:

  • farm implements (or systems) with a manufacturer's list price less than $3,500
  • tractors under 20 horsepower (15 kW)
  • motor vehicles as defined in the Highway Traffic Act, 1990
  • lawn and garden equipment
  • tires
  • drainage machinery
  • construction and multi-purpose implements like skid steers or telehandlers

Safety standards

The act authorizes the Minister of Agriculture, Food and Rural Affairs to establish safety standards and regulations for farm implements and attachments.

To protect people from injury, distributors and dealers must ensure the new and used farm implements they sell have the appropriate:

  • safety shields and/or guards installed
  • safety decals (labels) affixed to the equipment to provide important safety information to the user

Decals can be identified from catalogues available from the Canada East Equipment Dealers' Association (CEEDA).

The purchaser must be given an operator's manual and relevant safety instructions. General safety manuals are available for certain classes of farm implements, such as tractors and loaders.

Missing manuals, shields, guards or decals

If neither an operator's manual nor a general safety manual is available, the dealer can sell the used farm implement without one. Under the act, the dealer must get the purchaser's written confirmation that the dealer met these safety requirements.

A dealer can sell a used farm implement without safety shields, guards or decals only if the buyer signs a statement that the implement will be used for parts only.

Tractor roll bar requirements

All new tractors sold by Ontario dealers must be equipped with roll-over protective structures (ROPS). This requirement also applies to used tractors manufactured after January 1, 1992.

OMAFRA amended O. Reg. 369, under the Farm Implements Act, 1990 to reflect the harmonization of the Canadian Standards Association (CSA) and International Organization for Standardization (ISO) standards for ROPS on agricultural machinery.

Additional safety publications

Benefits of the act

There are many benefits for farmers, dealers and distributors under the act.

The benefits listed are subject to conditions as established in the legislation.

For farmers, dealers and distributors

  • A complaint resolution service to mediate disputes between farmers, dealers and manufacturers.
  • Hearings (Agriculture, Food and Rural Affairs Appeal Tribunal) to rule on disputes that are not resolved by mediation. Tribunal hearings provide farmers, dealers and distributors with a forum which is considerably less expensive, time-consuming or formal than the courts and is more knowledgeable about farm implements and agriculture. Farmers, dealers and distributors are all represented on the Tribunal.
  • Consultations between farmers, the industry and OMAFRA to address broad industry concerns regarding farm implements (for example, safety, repair cost estimates, inadequate standards, exclusivity clauses in dealer/distributor contracts, establishment of standard requirements requested for dealerships, leasing proposals).
  • A forum for the development of cooperative and constructive relations between farmers, dealers, distributors, manufacturers and government on farm implement issues.

Specific to farmers

  • Warranty protection for all new farm implements costing over $3,500.
  • Provision for the return of defective new farm implements.
  • A guarantee that new farm implements will perform according to the manufacturer’s specifications.
  • A requirement that new and used farm implements are sold with all necessary safety shields and decals affixed.
  • A requirement that new farm implements are sold with operator’s manuals.
  • A requirement that new tractors are sold with roll-over protection.
  • Supply of all spare parts for 10 years after the purchase of a new farm implement.
  • Supply of emergency spare parts within three working days.
  • Recourse for farmers if farm implement repairs performed by dealers are unsatisfactory.

Specific to dealers

  • Provision for the return of all new inventory to distributors on termination of a dealer/distributor contract.
  • Explanation of responsibilities between dealers and distributors on issues of defective new farm implements, warranties and supply of regular and emergency spare parts.
  • Standard farm implement safety requirements to reduce the risk of lawsuits against dealers arising from farm implement accidents.

Specific to distributors

  • As an arbitrator, OMAFRA provides a mediation service to resolve conflicts that would have resulted in civil court lawsuits.
  • Standard farm implement safety requirements to reduce the risk of lawsuits against distributors arising from farm implement accidents.

Specific to manufacturers and distributors

  • Manufacturers and distributors also benefit from the complaint resolution service provided.
  • Savings in legal costs and time associated with court cases.
  • Not having to pay settlements outside of the provincial court to preserve their public image.

Through ministry consultations, manufacturers and distributors have a chance to discuss and resolve industry concerns, such as:

  • farm implement safety
  • warranty compensation
  • dealer-distributor agreements
  • return of parts inventories

Registration requirements for dealers and distributors

To operate in Ontario, all dealers and distributors must register annually with OMAFRA.

Register your businesses by:

To request a paper registration form, contact the OMAFRA Agricultural Information Contact Centre toll-free at 1-877-424-1300, or email ag.info.omafra@ontario.ca.

Registered dealer, distributor and dealer/distributor list

Browse the list of dealers, dealer/distributors and distributors registered under the Farm Implements Act, 1990 for 2023.

Sale or lease of equipment by dealers and distributors

New farm machinery purchased or leased by the buyer is protected under the act:

  • all new farm implements costing over $3,500 have a standard minimum one-year warranty
  • farmers can return new farm implements if the implements are defective
  • dealers must make sure the farm implements they sell (new and used) have all necessary safety shields and decals
  • dealers must supply operator's manuals with new farm implements

Sale of farm implements

A retail sale agreement between the customer and a dealer must be documented and contain:

  • a description of the farm implement and any implement traded in
  • the purchase price and any trade-in allowance
  • the date of delivery
  • the names and addresses of the purchaser, dealer and distributor
  • the nature and duration of the warranties
  • other information as required by the act

Warranty and parts

Minimum warranty requirements

Every new farm implement must be built and perform according to the manufacturer’s specifications.

The warranty states that a new farm implement must produce and work at the power stated in the sale agreement (for example, if the sales invoice says a tractor is 75 horsepower, the tractor must produce 75 horsepower).

Warranties are for a minimum period:

  • tractors — less than one year or 1,000 hours of operation
  • combines — less than one year or 500 hours of operation
  • all other farm implements — one year
  • new repair parts — 90-day warranty that parts are free from defects

Distributors and manufacturers can offer longer warranties, especially for tractors and combines.

Warranty responsibilities

The distributor is responsible for honouring the warranties on power and quality. The dealer makes warranty repairs with the approval and direction of the distributor.

Spare parts

For every new farm implement sold, parts must be available for 10 years after the sale.

For farm implement break downs during the season of use and replacement parts availability, notify the dealer in writing and the dealer must order the repair parts from the distributor.

The distributor must have the parts at the dealership within three working days, unless delayed by circumstances beyond their control.

Emergency repair parts are needed when an implement breaks down during the season of use. The distributor must supply spare parts within three working days. If the distributor is not able to supply spare parts in this time, they may cover half the cost the farmer pays to rent replacement equipment.

Defective new farm implement

Inform the dealer, in writing, within 10 days of finding the defect.

Return a defective new farm implement to the dealer if:

  • you started using the unit within 12 months of purchasing it
  • you found the defect within the first 10 days or 100 hours of using the equipment
  • you informed the dealer in writing within 10 days of finding the defect
  • the dealer or distributor was unable to fix the unit within 14 working days

After the first 4 working days, the dealer or distributor should provide a suitable farm implement to use while they continue to fix your implement.

If the dealer and distributor are unable to repair the implement after 14 working days, the distributor must either replace the unit or refund the purchase price. The refund is discounted according to the actual use of the unit. If there was a trade in, the value of the trade in is considered in the refund amount.

Defective farm implements and original dealer out of business

Send written notice of the defective implement to the Farm Implements Act Program:

Farm Implements Act Program
Environmental Management Branch
Ministry of Agriculture and Food, Ministry of Rural Affairs
1 Stone Road West, 3rd Floor
Guelph, Ontario N1G 4Y2
Email: Drainage.Implements.Nutrients@ontario.ca

OMAFRA will inform the distributor.

Dealer contracts

Dealers typically sign a contract with the distributor to sell and/or service their brand of farm machinery.

The act provides some guidance on what is included in the contract and how issues/conflicts may be resolved. The act:

  • allows dealers to return inventory to the distributor when the dealership contract ends
  • outlines standard farm implement safety requirements that reduce the risk of lawsuits arising from farm implement accidents
  • gives dealers a way to resolve issues with farmers and manufacturers
  • allows the Appeal Tribunal to rule on disputes that cannot be solved through conflict resolution
  • provides a way to discuss and resolve issues between dealers and manufacturers, farmer organizations and government
  • does not allow dealer exclusivity clauses as part of dealer/distributor contracts (These clauses would limit the brands of farm machinery a dealer could sell. Dealers can offer a broad range of farm machinery and support small Ontario manufacturers)
  • and O. Reg. 123/06 establishes rules for how contracts can be ended between distributors and dealers
  • outlines the process dealers must follow to return parts inventories to distributors — this has resolved some confusion between dealers and manufacturers

Complaints and the tribunal process

Conflict resolution is available for all disputes about issues covered in the act. These include safety, performance and warranty of new machinery, parts supply, repairs and dealer contract termination.

The act gives farmers:

  • a way to resolve an issue if a dealer does not properly repair an implement
  • a complaint resolution service to help resolve disputes between farmers, dealers and manufacturers
  • the Appeal Tribunal that can solve disputes that are not settled through conflict resolution

Procedure for filing a complaint

Submit a complaint online using the Farm Implements Act complaint form.

To request a paper complaint form instead, contact the OMAFRA Agricultural Information Contact Centre toll-free at 1-877-424-1300, or email ag.info.omafra@ontario.ca.

Benefits of a tribunal hearing

Tribunal hearings provide farmers with a way to address their complaints.

It is cheaper, faster and less formal than the provincial court process and the Appeal Tribunal panel is more knowledgeable about agriculture and farm implements than provincial court judges.

Appeal tribunal members

The Appeal Tribunal is made up of farmers and lawyers representing all forms of agriculture.

A 3-member panel hears each case. For farm implement cases, the panel includes members who are dealers or distributors.