Fairness in Farm Equipment Dealer Agreements

Current disparity in bargaining power between farm equipment dealers and manufacturers make it highly difficult for dealers to operate their business profitably.  Agreements that most dealers are practically compelled to accept severely restrict dealers’ ability to market equipment of competing manufacturers.  And dealers are required to perform the manufacturer’s customer warranty services and repairs and carry an extensive inventory of service parts and equipment at significant cost to the dealer without being provided adequate compensation.  This situation seriously and adversely affects the future ability of farm equipment dealers to stay in business.  If substantial numbers of dealers do go out of business, farmers will have increasing difficulty in purchasing needed farm equipment at a reasonable location and price.

Senate Bill 1169 (introduced by Senator Mike Waugh) and House Bill 851 (introduced by Representatives Will Tallman and Michael Hanna) would amend the Pennsylvania Fair Dealership Law to better ensure onerous demands of manufacturers are not imposed upon farm equipment dealers in dealer agreements.

Recent amendments to Senate Bill 1169 establish a prudent and reasonable course of action on the types of protections that should be provided to farm equipment dealers.  If enacted, the amended version of Senate Bill 1169 would provide the same protections to farm equipment dealers as are provided to auto dealers under current state statutes.

Pennsylvania Farm Bureau urges support for passage of legislation in Senate Bill 1169 and House Bill 851 to ensure farm equipment dealers are treated fairly by equipment manufacturers in dealership agreements.