Amendments to Alberta’s Farm Implement Act now allow banks and other lenders to offer leasing options for farm equipment directly to farmers.
The amendments allow for leases without having to obtain a farm implement dealer’s license. Equipment dealers and distributors will continue to provide warranty service and parts, the province said today in a release.
The province said that with the increasing trend toward leasing farm equipment, allowing direct leasing and lease purchasing through financial institutions “provides for greater consumer choice and lower cost for farmers.” It grants them better access to capital and supports industry competitiveness, the province added.
The Farm Implement Act is meant to protect farmers buying farm equipment regarding quality, design, performance and suitability, and also requires dealers and distributors to maintain a supply of replacement parts for equipment they’ve sold.
Similar legislation exists in other provinces, and this amendment harmonizes farm implement laws across the Prairies, the province said.
