April 20, 2023 – In the House of Commons, MP Scot Davidson’s Private Member’s Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, was recently tabled for a second reading debate.
The Canadian Produce Marketing Association (CPMA), the Fruit and Vegetable Growers of Canada (FVGC), and the Fruit and Vegetable Dispute Resolution Corporation (DRC) call on all MPs to carefully consider the positive impact Bill C-280 would have on the fruit and vegetable sector and vote in favor of this legislation.
“This is a critical opportunity for the government to support the fresh produce sector and safeguard Canadian food security,” stated a press release.
Bill C-280 would establish a critical financial protection mechanism for fresh produce sellers in Canada to help secure payment in the case of buyer bankruptcy. The deemed trust would operate similarly to the U.S. model. Creating a deemed trust would not impose any additional cost to the government but “would help to ensure that fresh produce sellers can continue to support local economies across the country.”
The perishability of fresh produce, as well as the common industry payment terms, make it impossible for sellers to recoup money lost when a buyer goes bankrupt. The recent example of Lakeside Produce in Leamington, Ontario, demonstrates why a financial protection tool is needed to protect our essential sector and food security in Canada.
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