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Open letter to the Missouri State Legislature regarding HB 1124

May 9, 2014

Dear Legislator,

I am the executive director of the æÃæü¤ÇéÎåÔÂÌì whose main goal is to represent over 330 manufacturers of farm implements in North America. These manufacturers range from well-known corporations to small family-owned companies with limited access to a national customer base and dealer networks.

I am very concerned about language added to House Bill 1124 by the Senate in the closing days of the legislative session without hearings or any opportunity for public input. The substitute version passed by the Senate not only hurts the consumer, but also creates enormous obstacles for small manufacturers, trying to make its product available to the consumer in the manner that best serves the interest of both.

Current Missouri law already tips the scale of fair play in favor of the dealer, providing protections which keep manufacturers from competing directly with their franchised dealers. This legislation puts the State in the position of deciding not only the rules, but also who is even allowed to play in the game.

I find it almost impossible to believe that the same Senators, who just days ago stood up for broad-based pro-growth tax reform, would now support laws forcing consumers to only make purchases through middlemen-franchised dealers.

While I fully understand this bill does not deal with the manufacturers of farm equipment whom I represent, I find it more than interesting that it was added to a bill dealing with all-terrain vehicles, off-road vehicles and utility vehicles. The leap from motor vehicle dealers to equipment dealers is not a long one as we have recently seen in other states where farm equipment has been defined as a “motor vehicle”.

As much as our members would like to do business with a dealer network, the ongoing consolidation of dealerships is removing that option for many of our member companies and forcing them to direct sales with the end user.

I hope you will understand how strong our opposition is to this last-minute assault by the dealer’s lobby.

Best Regards,

Vernon Schmidt, Exec. VP

Press Coverage of HB 1124