May 19, 2023 – The Fruit and Vegetable Growers of Canada (FVGC), the Canadian Produce Marketing Association (CPMA) and the Fruit and Vegetable Dispute Resolution Corporation (DRC) have announced that Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, has been passed at Second Reading in the House of Commons.
Bill C-280, championed by Member of Parliament (MP) Scot Davidson, aims to establish a deemed trust, a vital financial protection mechanism for fresh produce sellers in Canada. This mechanism will help secure payment in the event of buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security.
The deemed trust proposed by Bill C-280 mirrors the successful model employed in the United States. It presents a financially feasible solution that imposes no additional burden on the government. By establishing this trust, fresh produce sellers can continue to contribute to local economies across the country.
The perishable nature of fresh produce, coupled with common industry payment terms, leaves sellers unable to recover losses when faced with buyer bankruptcy. The recent case of Lakeside Produce in Leamington, Ontario, serves as a reminder of the urgent need for a financial protection tool to safeguard this essential sector and uphold food security in Canada.
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