Passed by the Canadian Senate on December 10, 2024, Bill C-280 will establish a deemed trust mechanism for fresh produce growers and sellers in Canada, ensuring payment in the case of buyer bankruptcy.

 The Fruit and Vegetable Growers of Canada (FVGC), the Canadian Produce Marketing Association (CPMA), and the Fruit and Vegetable Dispute Resolution Corporation (DRC) are thrilled to see Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, pass at third reading in the Canadian Senate.  

 
Bill C-280 was introduced in the House of Commons by Member of Parliament Scot Davidson and sponsored in the Senate by the Honourable Michael MacDonald.

 
"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 CPMA president Ron Lemaire. "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."
 

"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 FVGC executive director Massimo Bergamini. “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.”

 
In addition to its impact on domestic produce sales, the lack of a financial protection mechanism for fresh produce sellers in Canada has meant that Canadian sellers have been unable to utilize the preferential treatment they previously enjoyed under the United States Perishable Agricultural Commodities Act (PACA). Instead, Canadians selling fresh produce to our biggest trading partner must currently pay double the bond on the shipment to access the PACA dispute resolution mechanism – a cost that is simply untenable for many Canadian businesses. The establishment of financial protection under Bill C-280 now paves the way for the U.S. Department of Agriculture to restore Canadian produce sellers’ preferential access under PACA.

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

 

Source: Fruit and Vegetable Growers of Canada December 11, 2024 news release