The company was placed in receivership last June, ordered bankrupt in late January and on Feb. 27 the Court of King’s Bench approved the sale to 102203996 Saskatchewan Ltd. for an undisclosed price.

The buyer is Parkland Welding and Machine, according to court documents. It emerged in mid-December after a months-long process.

Receiver Ernst and Young had asked for offers in late September. Nine parties submitted 13 offers to purchase or liquidate.

None were deemed acceptable, but one liquidation proposal was superior, the documents state.

In the meantime, Eagle Hydraulic asked to submit an amending offer and negotiations continued until Parkland’s intervening offer Dec. 16. One month later the two bidders were advised to submit their best and final offers.

Ram and Leon Manufacturing made hydraulic cylinders and agricultural equipment, respectively. The family owned companies were both in business for more than 50 years but began having cash flow problems several years ago.

There were numerous customer complaints about Leon’s, in particular, because it couldn’t provide products in a timely way or at all and wanted money up front for orders. Some took the company to court to get their money back.

E&Y did not return a request for more information on what is happening with Leon’s property and assets. The court documents show some assets were sold while the company was in receivership.

The court has ordered details of the Ram sale sealed for now. The receiver said it was concerned about disclosing details before the Leon buildings were sold and asked for a longer sealing period than usual.

Bankruptcy court filings show Leon’s total liabilities at nearly $19 million. Unsecured creditors account for $12.1 million of that. Its assets are estimated at about $6.5 million.

Ram’s total liabilities were $17.7 million, offset by assets worth just more than $5 million.

karen.briere@producer.com

The post Buyer found for bankrupt Ram Industries assets appeared first on Country Guide.

“It’s been a long time since tariffs made up a piece of the puzzle between the U.S. and Canada,” says Eric Wareham, senior vice-president for government affairs with the North American Equipment Dealers Association.

”We’re talking clear back to the early 1900s.”

NAEDA represents agricultural equipment dealers in Canada and the United States.

The uncertainty surrounding the tariff threat has farm equipment dealers in both the U.S. and Canada feeling uneasy.

“It is worrisome for dealers across the board when we start talking about tariffs,” Wareham says.

“It’s kind of a wild west. No one really knows how it’s going to play out.”

The tariff would raise the cost of inputs for agricultural equipment manufacturers on both sides of the border. Canadian manufacturers source many components from the U.S., and vice versa.

“With everything we have, there are all kinds of components from all over the world compiled and assembled in different places,” says Wareham.

“You’re looking at a cost increase on the whole-goods side The price tag of farm equipment on the lot is going to go up.

“There are a ton of components for farm equipment that are manufactured in Canada, so obviously that’s going to have a big impact on the cost, with a 25 per cent tariff added onto every item that’s incorporated into machinery. The same can be said for Mexico.”

That prospect couldn’t come at a worse time for farm equipment dealers. Low farm commodity prices, higher interest rates and a growing inventory of unsold equipment have put significant pressure on dealers’ finances.

“We’re already in a downturn, and now we’re going to impose tariffs and inject that additional uncertainty into the market,” says Wareham.

“When you inject that uncertainty of what it’s going to look like down the road, that’s really what holds people back from making purchases.”

A blanket 25 per cent tariff, as threatened, would also put even more downward price pressure on farm commodities sold into the U.S., further reducing Canadian farmers’ buying power.

“Combine high inventory levels, uncertainty and a deep dive in farm net income and all those three combined do make a perfect storm,” he adds.

It’s uncharted territory, but a look back at the last Trump administration’s trade sanctions on China proved to be a financial disaster for the U.S. as well as having a significant impact on dealers’ profits.

“We didn’t have tariffs on Canada in the last Trump administration, but you can look at what happened in the U.S.,” Wareham says.

“At that time, in 2018, farm income was on the rise. We were coming out of the slump of ’15, ’16. Even still, it had a very negative effect on farmers because of the U.S. retaliatory tariffs. Then you were looking at direct government payments to make up for that. The U.S. paid out $25 billion over two years to compensate farmers for lost markets.”

Those payments, which accounted for roughly 40 per cent of farmers’ net income at the time, were slow in coming and were made directly to farmers, so they didn’t directly benefit equipment dealers who lost sales.

The COVID-19 pandemic hit before that problem had been fully resolved, which resulted in a cut in new equipment production and turned farmers’ attention to the used equipment market.

If tariffs are applied, something similar may happen again in both the U.S. and Canada. In the near term, farmers with cash will likely find the best opportunity for avoiding those potential price increases in the fairly large existing inventory of new and used machines to which dealers already have access.

“We have somewhat of a glut in inventory,” says Wareham.

“You’ll also have a lot more repairs, with people trying to get more useful life out of the equipment they have. That continues to be a struggle for dealers on the service side, having enough technicians. So it puts a strain on that.”

The result is many dealers are telling NAEDA they’re not considering any capital expenditures or possibly even not hiring new staff until things settle out.

“(Dealers) are just in this wait-and-see mode right now,” says Wareham.

“It’s a pause on consolidation or acquisitions, purchasing new facilities or possibly even hiring, with the exception of technicians. We’re always looking for those.

“But for any kind of expansion mindset, I think it’s a wait and see until some of this starts to sort itself out.

The post Tariffs add to ‘perfect storm’ for ag equipment dealers appeared first on Country Guide.

A sharp drop in crop prices coupled with rising production costs have lowered farm incomes around the world, forcing farmers to rethink purchasing heavy equipment, thus setting a gloomy demand environment for agriculture equipment makers.

CNH now expects its full-year adjusted profit to be in a range of $1.30 to $1.40 per share, compared with $1.45 to $1.55 per share previously.

The Basildon, UK-based company now expects its agriculture segment net sales to be down between 15 per cent and 20 per cent year-over-year, compared with a fall of 11 per cent to 15 per cent expected previously.

“Our view is that the current down-cycle is likely to extend into 2025 given the current commodities backdrop and the impact on farmer economics globally,” Oppenheimer analyst Kristen Owen said.

U.S. farmer income, a broad measure for farm profitability, is expected to fall about 25 per cent to $116 billion, from $156 billion in 2023.

Still, robust pricing and job cut initiatives undertaken by the company have helped it top revenue estimates in the quarter even as demand remains subdued in an industry-wide downturn.

The company reported a 16 per cent fall in second-quarter revenue to $5.49 billion, but beat analysts’ estimates of $5.32 billion, according to LSEG data.

Shares of the company were up 2.1 per cent in morning trade.

On an adjusted basis, the company earned 38 cents per share, slightly above analysts’ estimates of 37 cents.

“We will continue to manage the business prudently through 2024 while positioning ourselves for 2025,” CEO Gerrit Marx, who took over CNH’s helm on July 1, said in a statement.

The post CNH Industrial lowers profit forecast on slow demand for farming products appeared first on Country Guide.

The slower equipment sales are a knock-on effect of corn and soy prices dropping to more than three-year lows as U.S. farm income plummets and equipment makers and dealers are forced to pivot quickly after a period of booming business.

Reuters interviewed ten equipment dealers, mostly in the U.S. Midwest, as well as farmers and analysts, who said low crop prices combined with persistently high interest rates are deterring farmers from purchasing machinery. As farmers make fewer purchases, inventories of equipment are swelling, cutting into profits for dealers and big manufacturers alike.

Manufacturers Deere and CNH Industrial struggled to keep up with the strong demand for tractors in 2022 when farm income hit a record high and pandemic assistance payments gave farmers extra money to upgrade their fleets. Now both expect slower sales to hit their bottom line this year.

Josh Gruett, dealer principal at Waupun Equipment in Waupun, Wisconsin, which sells farm, construction and other equipment, said his inventory has risen 30 per cent to 35 per cent since the end of 2023.

The excess of unsold machinery prompted Gruett to halt new orders from companies including CNH, AGCO, and Polaris in hopes of balancing supply and demand, he said.

In April, inventory levels of high-horsepower tractors (300 and above) in the U.S. surged by almost 107 per cent year-over-year, with combine inventory experiencing a 17.63 per cent increase, according to Sandhills Global, a market research firm specializing in tracking used inventory for industrial manufacturers.

Slashing prices

Chris Tanner, a fourth-generation farmer, said some dealerships in his town of Norton, Kansas, have slashed prices up to 30 per cent with an added incentive of zero percent interest to move machinery off their lots.

“They’re heavily discounting combines and tractors—but after coming through a drought and experiencing poor prices we don’t have the money to spend,” Tanner said.

The pain has also spread to those who sell spare parts.

Guy Robinson, is a parts manager at Dekalb Implement Company, which sells Deere equipment in DeKalb, Illinois

During the peak years of the pandemic, Robinson said, the combination of supply chain troubles and rising demand made getting everything from parts to equipment to farmers “a nightmare.”

And then demand began falling off in late 2022, he said.

About 30 miles south of Robinson’s dealership, Aaron Rogers, retail location manager at AHW, another Deere dealer in Somonauk, Illinois, said zero or low percentage financing is a popular way to try to bring in customers.

“If you can get a good interest rate, that’s what’s driving the market right now,” he said. Offering lower financing rates to sell inventory can result in a loss for dealers, but carrying unsold machinery can prove costlier.

Manufacturers give dealers free financing on equipment for a limited period while they sell it, but once that expires, dealers have to pay interest on their unsold inventory to manufacturers.

With fewer sales forecast, equipment dealers are feeling pressure to auction off equipment “right away” to preserve margins, said Casey Seymour, a sales consultant for dealers.

“Some of the stuff that is being put to auction is because dealers can’t afford to keep the floor plan,” Seymour said. “They can’t have millions of dollars worth of inventory sitting around at a floor plan [with a] 7.5 per cent interest rate.”

Particularly, inventory levels have been a big concern in the Midwest grain belt, said Ryan Dolezal, the manager of TractorHouse, a site for selling new and used farm equipment.

“We do not see the inventory levels issues like we do in Midwest markets,” he said of specialty crop equipment compared to row crop machinery.

Used agriculture machinery inventory, the bulk of machinery sold in the United States, is on a steady increase that is forcing dealers to auction equipment at a lower price point, said Mitch Helman, a sales manager at Sandhills Global.

“For planters there’s a 70 per cent gap between auction and retail and that’s insane. A spread this high has not been observed since May 2015,” he said, referring to a time when grain oversupply was pummeling farmer income.

Deere reports earnings on May 16. In February, the company announced plans to cut production and warned shareholders inflation would make farmers reticent to finance equipment purchases.

Texas-based farmer, Scott Born said given his tighter budget, he’s forgoing buying new or used equipment for the remainder of the year.

“We have to try to limp by without major repairs—it’s tough especially since (equipment and fertilizer) has gone so much higher in just a few years.”

—Additional reporting for Reuters by Heather Schlitz in Chicago

The post Too many tractors: As boom times fade, farm equipment piles up appeared first on Country Guide.

The completion of the transaction was subject to certain regulatory approvals which have all been met, Linamar said in a news release.

Linamar, best known as an auto parts manufacturer, announced it would acquire the Saskatchewan-based firm in late December.

“Linamar’s long term vision is to focus on six markets where we see significant market and technology evolution over the coming decades as a result of key global trends that are under way,” said Linda Hasenfratz, Linamar’s executive chair and CEO, during an online press conference in December. “Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.

“We’re calling this our third down project,” added Jim Jarrell, Linamar president and COO. “This is the third short-line acquisition we’ve done to build our powerhouse company, to hit the strategy of feeding the world. If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complimentary. Also as part of the transaction we’re acquiring the business of Freeform plastics and the Highline manufacturing line”

Both Freeform Plastics, which builds plastic tanks for ag applications, and Highline, an implement brand, are divisions of Bourgault.

Hasenfratz said the focus at Linamar is on acquiring shortline equipment manufacturers that produce specialized products which the major manufacturers don’t hold a dominant market share in.

The deal saw Linamar buy 100 per cent equity in Bourgault for CAD $640 million. Current president Gerry Bourgault will step away from the company, although the remainder of the management team will remain in place.

Linamar said it doubled MacDon’s business if five years and hopes to do the same with Bourgault.

The post Linamar makes Bourgault buyout official appeared first on Country Guide.

“One of the keys for us was making sure we found a partner that was committed to preserving the Versatile and Farm King brands,” said Adam Reid, VP of sales and marketing at Versatile.

“We wanted to make sure the viability of the plant here in Winnipeg and our staff was secure. And taking care of all of our stakeholders, the suppliers, shareholders.”

In July, management at Buhler Industries, parent company of the Versatile and Farm King brands, revealed it had begun a search for a “long-term investment partner”. In late December it announced that Turkish tractor manufacturer Başak Traktör, a wholly-owned subsidiary of ASKO Holding, was buying 96.7 per cent of its outstanding shares for a reported CAD $60.5 million.

Başak Traktör presented what was described as the most “well rounded” proposal, which met their concerns.

“Başak Traktör, has several manufacturing facilities in Turkey,” said Reid. “They’re big in ag and construction equipment. They’re very passionate about that sector.”

“Sami Konukoglu, (chairman of ASKO Holding) is extremely passionate about manufacturing, particularly agricultural manufacturing,” Reid added. “He started on the factory floor and worked his way up. He has a vision for global expansion and sees Versatile as a key to that. He understands the power of the Versatile and Farm King brands… he’s focused on the growth and expansion of the company.”

Talks with Başak Traktör had been underway since early fall, according to Reid, who expects the deal will be finalized by the first week of January. All of the roughly 24 million ownership shares to be acquired by Başak Traktör belonged to Russian ag equipment manufacturer Rostselmash, which had been the majority owner until now.

Brands will continue, expand

Some of the brand’s dealers have expressed apprehension at the thought of a change of ownership and what that might mean for the brand. Senior management, including COO Grant Adolph along with Reid, will remain in their current roles under the new ownership structure to help maintain consistency during the transition and moving forward.

Reid says dealers and customers needn’t worry about the brand disappearing. Instead, he expects it to grow and expand under the new ownership.

Due to the supply chain disruptions in the last two years, Versatile has struggled to fill orders for new tractors, due to persistent component shortages. The new ownership will give the brand increased purchasing power and should help it ramp up the number of tractors rolling off the assembly line to better meet customer demand.

It could conceivably also result in an expanded product line for Versatile, whose tractor offerings only go up from 175 horsepower. Başak’s models conveniently run from 50 to 120, and it could make a good fit for brand expansion. Versatile has so far avoided the temptation to design smaller models to play in the lucrative and very large utility tractor segment, because of the large number of players already there. But with a ready line of models from Başak, that could change. All that, though, remains speculation at the moment.

Başak’s 5120 model, which was released in 2019, won an iF Design award. So the Turkish brand now produces models with features that could potentially appeal to North American buyers.

“There could be some synergy in the long run,” acknowledges Reid. “But at this point the focus is on Versatile and on the manufacturing here, and pushing for growth here.”

As for the assembly of Kubota M8 tractors at the Winnipeg plant, Reid says that will continue.

“This (ownership) change does not affect our current relationships,” he said. “I think what we’re excited about is the passion that Başak Traktör and ASKO Holding brings to the manufacturing side of our business. They’re very forward-looking and we’re excited about where we can go together.”

“I think this opens up a lot of opportunities for us going forward. Internally, the team is very exciting about what this means for securing the future of the Versatile brand.”

Russians out

While the deal brings a new partner on board with a global vision willing to advance the Versatile brand, it solves one other problem for Buhler: it ends the involvement of a Russian company in its ownership. That had been causing some trouble for Versatile due to the invasion of Ukraine.

“The nature of who our major shareholder was did create some concern in some of our suppliers,” said Reid. “Even though Buhler Industries as an entity operated independently and autonomously, there were concerns about the ties back to Russian ownership. So we’re very excited about what this change in ownership can do for us when it comes to our global partnerships with our suppliers.”

Since Russia attacked Ukraine, management at Buhler has had to take steps to publicly distance itself from its primary shareholder. In March of 2022, the board of directors announced it had removed Konstantin Babkin, who had been on Buhler’s board since Rostselmash acquired majority ownership of Buhler in 2007. He had been a vocal supporter of Vladimir Putin and Russia’s aggressive action in Ukraine. The Buhler board quickly and publicly denounced Babkin’s outspoken views, noting they didn’t reflect the values of the board overall or those of Buhler Industries.

However, the company remained under majority ownership by Rostselmash. And some Russian representatives remained on the board. With the Başak acquisition, all board members will have to resign and be replaced with those selected by the new owner.

The post Başak Traktör of Turkey looks to move Versatile brand forward appeared first on Country Guide.

“Linamar’s long term vision is to focus on six markets where we see significant market and technology evolution over the coming decades as a result of key global trends that are under way,” said Linda Hasenfratz, Linamar’s executive chair and CEO, during an online press conference. “Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.

“I feel like our team has really hit it out of the park this year, finalizing three acquisitions. All three business bringing excellent technology to the table and strategic value.”

“We’re calling this our third down project,” added Jim Jarrell, Linamar president and COO. “This is the third short-line acquisition we’ve done to build our powerhouse company, to hit the strategy of feeding the world. If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complimentary. Also as part of the transaction we’re acquiring the business of Freeform plastics and the Highline manufacturing line”

Both Freeform Plastics, which builds plastic tanks for ag applications, and Highline, an implement brand, are divisions of Bourgault.

Hasenfratz said the focus at Linamar is on acquiring shortline equipment manufacturers that produce specialized products which the major manufacturers don’t hold a dominant market share in.

In the press release announcing the takeover, current Bourgault president Gerry Bourgault commented, “We are excited to have our team of over nine hundred people in Saskatchewan, and over one thousand worldwide, join the Linamar family. Linamar has a proven track record for not only successfully integrating acquired companies, but also for their manufacturing expertise and business execution overall.”

The deal will see Linamar take 100 per cent equity in Bourgault for CAD $640 million as current president Gerry Bourgault steps away from the company, although the remainder of the management team will remain in place.

“Bourgault is a company we’ve long had our eye on,” said Hasenfratz. “We like the technology. We like how the business is run and how it complimented our existing lineup of products. So we’ve been talking to them on and off. The timing was right. The family was ready to make an exit. It comes at a time when all of our business can complement and create growth.”

When it acquired MacDon, that company had sales of roughly $500 million, about the same as Bourgault does now. Linamar has managed to push MacDon’s current sales into the range of $1 billion. Hasenfratz expects to be able to achieve the same level of growth with Bourgault. She thinks the company can do that by increasing Bourgault’s global reach and cutting manufacturing costs by including it in Linemar’s current procurement processes.

“We have the ability to link and leverage our purchasing efforts,” confirmed Jarrell.

“We see excellent growth potential with the business,” Hasenfratz added. “It’s not dissimilar in size to what MacDon was when we acquired it five years ago. We are selling now in more than 30 countries with nearly 2,500 dealers and distributors around the world. We’ve really created quite a broad strategy around our agricultural products.”

The deal is expected to be finalized in the first quarter of 2024.

Said Hasenfratz: “We doubled MacDon’s business in five years. We hope to do the same with Bourgault.”

The post Bourgault becomes third shortliner acquired by Linamar since 2017 appeared first on Country Guide.

Buhler Industries and Başak Traktör Tarim Ziraat Ve Iş Makinalari Sanayi Ticaret A.Ş., a subsidiary of ASKO Holding, entered an agreement to purchase common shares held by Russia-based Combine Factory Rostselmash Ltd., and to acquire all outstanding debt Buhler owed to Rostselmash, for $60.5 million.

“We believe that ASKO Holding’s deep understanding and involvement in the agricultural equipment industry, will assist the Company in achieving its immense potential for future growth and innovation.” said Grant Adolph, chief operating officer of Buhler Industries in a news release Wednesday.

Rostselmash owned about 97 per cent of Buhler’s shares. It purchased some 80 per cent of shares in 2007 for $145 million and increased its stake with a $12.25 million purchase of 16.3 per cent of shares in 2021.

Buhler Industries manufactures the Versatile tractor line and Farm King equipment.

It’s heavy ties to Russia led to the company distancing itself from that country’s invasion of Ukraine in February 2022. Buhler put out a statement saying it “operates with autonomy” and its “decisions are made in Canada.” Shortly thereafter, its board accepted the resignation of long-time member Konstantin Babkin, who had Russian political ties.

Also Wednesday, Linamar announced it had reached an agreement to acquire Bourgault Industries Ltd., of St. Brieux, Sask., for $640 million.

Bourgault manufacturers seeding equipment and other ag implements.

“The Bourgault name is synonymous with broad acre agricultural seeding innovation and offers a tremendous opportunity for Linamar to further diversify and grow our agriculture platform, as well as our Industrial segment overall,” said Linda Hasenfratz, Linamar’s CEO, in a news release.

Linamar also owns stakes in MacDon and Salford.

“The Bourgault family is incredibly proud of the legacy we have created both here in in St. Brieux, Saskatchewan, but also around the world,” said Bourgault president Gerry Bourgault in a news release. “We are excited to have our team of over nine-hundred people in Saskatchewan, and over one thousand worldwide, join the Linamar family.”

—Geralyn Wichers is associate digital editor of AGCanada.com. She writes from southeastern Manitoba.

The post Buhler Industries finds new majority shareholder in Turkish firm  appeared first on Country Guide.

Unit sales of four-wheel-drive ag tractors grew in both Canada and the U.S. in November, continuing a strong final quarter for 2023. In Canada, four-wheel-drive unit sales grew 84.8 per cent year-over-year in November and 41.5 percent year-to-date over 2023.

U.S. sales of four-wheel-drive tractors in November were even more dramatic, with a 72.6 per cent increase year-over-year and a 38.2 per cent year-to-date gain.

These figures are unusual for this time of year, wrote Curt Blades, senior vice-president, industry sectors and product leadership with AEM, in a news release.

“November is historically a slow month for tractor and combine sales,” he said.

“We are happy to see the year-to-date sale’s strength in the larger equipment market and remain optimistic for the long-term.”

Overall Canadian tractor sales were more moderate, finishing November up 1.0 percent. Combines were down for the month, falling 12.8 per cent.

On the U.S, side, overall U.S. tractor sales are down 4.7 per cent compared to sales in November 2022. Combine sales finished 11.3 percent below this time last year.

In October, the AEM reported Canadian sales of tractors above 100 horsepower were up 37.4 per cent compared to the same month in 2022. Four-wheel drive tractor sales were up 141 per cent in October, compared to the same month in 2022.

This isn’t because farm machinery has dropped in price. It’s done quite the opposite, Scott Garvey reported in Grainews earlier this month.

As per the Manitoba government’s most recent cost of production guide, Medium (160 to 224 horsepower) MFWD tractor prices have increased 35 per cent; large four-wheel drives (550+ horsepower), up 28 per cent; Class 9 combines, up 27 per cent; high-clearance sprayers, up 31 per cent; and air drills, up 62 per cent, Garvey wrote.

This makes considerations of whether to replace old equipment all the more complex, he added.

High equipment sales could be attributed to production backlogs in recent years, which meant farmers were unable to replace equipment earlier.

Full equipment sales reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.

— Jeff Melchior reports for Alberta Farmer Express from Edmonton.

The post Tractors continue unusually strong sales in November appeared first on Country Guide.

An announcement this week from the federal government called for an adjustment to the Competition Act that would prevent manufacturers from refusing to provide the means of device and product repair in an “anti-competitive manner.”

That declaration came in the government’s 2023 Fall Economic Statement, released Tuesday.

Why it matters: The right-to-repair debate has been a long-fought battle on between producers and manufacturers.

Grain Growers of Canada was among those applauding the decision.

“Enabling growers to access essential tools and software for maintaining their equipment — such as tractors and combines — will foster a more equitable landscape between manufacturers and consumers,” GGC executive director Kyle Larkin said in a release.

This right to repair will enable producers to save time during critical points of the growing season, the farm group argued.

READ MORE: Right to repair still an issue

Those on the manufacturing side have been more lukewarm on right to repair.

In a webinar held by the Canada West Foundation last year, Eric Wareham of the North American Equipment Dealers Association defended manufacturers’ ability to hold certain repair tools and methods in-house. He argued that farmers already have the ability to repair 98 per cent of a piece of ag equipment.

“The two per cent we do not allow access to is our critical safety and emissions criteria functions,” said Wareham.

The association supports “the right to repair but not to modify,” he added.

Manufactures have concerns that, if given proprietary repair tools, some owners will damage their equipment by altering it.

Gaps

Although Larkin classified the announcement as a step in the right direction, he added that there needs to be more clarity as to what would and would not be included under the amendment.

“The devil is going to be in the details,” he said. “Of course, we want agriculture, equipment, tractors, combine, etc. to be included. It’s not precisely clear in the economic statement that it will be included.

The right-to-repair lobby would also like to see amendments to the Copyright Act, said Larkin.

“One of the challenges that farmers have experienced is that a lot of the time manufacturers will stand behind their intellectual property and that’s what they’ll use to not offer farmers the access to tools and diagnostics information to actually repair their equipment themselves,” he said.

“They also hold back a lot of that software from independent shops.”

Other nuggets

Beyond the right-to-repair announcement, mentions of agriculture were light in the Fall Economic Statement Nov. 21.

A search of the 141-page document for the term “agriculture” revealed only a handful of results.

Non-agriculture features of interest to farmers include plans to ease the exemption reporting requirements for the federal Underused Housing Tax (UHT), for certain classes of property and property owners.

One of the few other sections of interest for farmers referred to the use of waste biomass to generate electricity and heat.

Industries such as canola have eyed the biofuel market as a potential avenue for growth. Speaking at an early November event at the Richardson Centre for Food Technology and Research in Winnipeg, Curtis Rempel, Canola Council of Canada vice-president of crop production and innovation, noted the hype biofuels have created for the commodity.

A significant chunk of the council’s research dollars is going to processing technology to tailor canola for the new market, as well as yield to meet the anticipated demand, he told attendees.

“Biofuels seem to be taking the front-and-centre space for the oilseed sector, at least in Western Canada,” he said.

The recent economic statement says that “During the course of production, industries like forestry and agriculture generate organic by-products, such as leftover wood chips and crop residues, which have the potential to be used to generate affordable energy while also reducing emissions.”

Tax credits expanded

The statement proposed expanded eligibility for the 30 per cent Clean Technology investment tax credit, which could play into the future of the biofuel market.

“This expansion… would be available to businesses investing in eligible property that is acquired and becomes available for use on or after the date of the 2023 Fall Economic Statement,” the document read.

Another tax credit expansion would see wider eligibility for the 15 per cent Clean Electricity investment tax credit, to include systems that produce electricity or a mix of electricity and heat from waste biomass. That tax break would be available as of the date of Budget 2024 for projects that did not begin construction before March 28, 2023.

— Jeff Melchior reports for Alberta Farmer Express from Edmonton.

The post Ottawa lines up with farmers on right-to-repair appeared first on Country Guide.