OTTAWA, ONTARIO, CANADA - It was recently revealed that the Financial Protection for Fresh Fruit and Vegetable Farmers Act (Bill C-280) has passed by the House of Commons Standing Committee on Agriculture and Agri-food without amendment and with the support of all political parties. Following this announcement, the Canadian Produce Marketing Association (CPMA), the Fruit and Vegetable Growers of Canada (FVGC), and the Fruit and Vegetable Dispute Resolution Corporation (DRC) expressed their approval surrounding the bill’s passing.

"The passage of Bill C-280 at Committee Stage marks another crucial step forward in ensuring the stability and financial security of the fruit and vegetable sector," said CPMA President Ron Lemaire. "It has been a long road for our industry in working toward an effective financial protection mechanism. We are greatly appreciative of the efforts of MP Davidson and the support of all Committee members in helping to move this critical legislation forward."

Sponsored by Member of Parliament (MP) Scot Davidson, Bill C-280 aims to establish a deemed trust, a vital financial protection mechanism for fresh produce sellers in Canada. According to a release from the two organizations, this mechanism will help secure payment in the event of buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security.

CPMA and FVGC also went on to note that the perishable nature of fresh produce, coupled with the industry’s typically longer payment terms, leaves sellers unable to recover losses when faced with buyer bankruptcy.

"The significance of Bill C-280 for the fresh produce industry cannot be overstated,” emphasized FVGC Executive Director Rebecca Lee. “Our organizations were grateful for the opportunity to speak to the Committee about the importance of financial protection for all fresh produce sellers. Looking ahead to the final rounds of debate and voting in the House of Commons, we are optimistic that all parties will continue to lend their support and work to advance the bill as quickly as possible."

Bill C-280 will be referred back to the House of Commons this fall for Report Stage and Third Reading Debate and votes, and the CPMA, FVGC, and DRC call on all Members of Parliament to recognize the positive impact that Bill C-280 can have on the fruit and vegetable sector and the broader Canadian economy.

For more updates on this pivotal bill, keep reading AndNowUKnow.

Canadian Produce Marketing Association Fruit and Vegetable Growers of Canada Fruit and Vegetable Dispute Resolution Corporation