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

“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. “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, introduced in the House of Commons by Member of Parliament Scot Davidson and sponsored in the Senate by the Honourable Michael MacDonald, establishes a deemed trust financial protection mechanism for fresh produce sellers in Canada.

This deemed trust will help secure payment in the event of buyer bankruptcy, providing stability, and support to the industry while safeguarding Canadian food security.

“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. “The establishment of a deemed trust for all fresh produce sellers will strengthen food security in Canada and help ensure that 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, a press release added.

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

CPMA, FVGC, and DRC thank all Senators for their work in considering this important legislation and express their appreciation to both Chambers of Parliament for their recognition of the positive impact that Bill C-280 will have on the fruit and vegetable supply chain in Canada.

When new legislation and the produce industry cross paths, ANUK will be here to report.