News
Bill C-280, financial protection bill for produce sellers welcomed in Canada

Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, has successfully passed its third reading in the Canadian Senate, marking a significant step toward enhancing financial protection for produce sellers in Canada.

In a recent statement, Fruit and Vegetable Growers of Canada (FVGC), the Canadian Produce Marketing Association (CPMA) and the Fruit and Vegetable Dispute Resolution Corporation (DRC) welcomed the bill’s passage as a long-awaited victory for the industry.

“The passage of Bill C-280 has been the result of decades of advocacy by organizations and industry members across the fresh produce supply chain and in the broader agriculture sector,” said Ron Lemaire, CPMA president, in the release.

“We are grateful to all who have supported this work over the years, and greatly appreciative of the efforts of Bill C-280’s sponsors and Parliamentary champions in moving this important legislation forward.”

Bill C-280 introduces a deemed trust financial protection mechanism for fresh produce sellers. The trust aims to secure payments in the event of buyer bankruptcy, providing stability and support to the industry and helping to safeguard Canadian food security.

Historically, Canadian produce sellers have lacked the financial protection mechanism for fresh produce sellers enjoyed by the United Sates under the Perishable Agricultural Commodities Act (PACA), leaving Canadian businesses at a competitive disadvantage.

“The positive impact of Bill C-280 on the highly integrated fresh produce industry cannot be overstated,” said Luc Mougeot, DRC president and CEO.

“The lack of a financial protection mechanism in Canada has been a pain point in our trading relationship with the United States for many years. We look forward to working with our U.S. counterparts to put in place reciprocal protection and provide stability for produce sellers on both sides of the border.”

Under the current system, Canadian sellers must pay double the bond required for PACA’s dispute resolution mechanism.

The new bill in place will allow the U.S. Department of Agriculture to restore Canadian produce sellers’ preferential access to PACA protections.

“From the farm to the dinner plate, fresh produce sellers make significant contributions to local economies across the country, and provide Canadians with safe, nutritious fruit and vegetable products,” said Massimo Bergamini, FVGC executive director, in the release.

“The establishment of a deemed trust for all fresh produce sellers will strengthen food security in Canada and help ensure that our sector can continue to fulfill its important roles.”

More information can be found here.