In a rare move, Parliament has passed a private member's bill amending the Bankruptcy and Insolvency Act to protect fruit and vegetable growers when wholesalers declare insolvency. Blacklock's Reporter says the legislation, sponsored by Conservative MP Scot Davidson (York-Simcoe, Ont.), represents a victory for farmers who have advocated for such measures for over 40 years.“This has been in the works for a very long time,” said Davidson. “This bill will make a real difference for our produce farmers.”The newly enacted Bill C-280 ensures payments owed to fresh produce suppliers are prioritized in cases of insolvency. It passed the Senate by a 54 to 21 vote, following overwhelming approval in the House of Commons, where it passed 320 to 1.Liberal MP Pam Damoff (Oakville North-Burlington, Ont.) was the sole dissenter, drawing attention for her riding association’s ties to a company opposing the bill.Massimo Bergamini, executive director of the Fruit and Vegetable Growers of Canada, emphasized the urgency for change, citing how growers face unique challenges due to the perishability of their goods. “The fruit and vegetable sector deals with perishable products and short sales windows,” said Bergamini. “Current insolvency laws offer no protection to growers who can’t reclaim goods that quickly lose value.”Bergamini pointed to the 2023 bankruptcy of Lakeside Produce, a Leamington, Ont., wholesaler that left $188 million in unpaid liabilities. Losses for some growers reached up to $500,000, causing devastating impacts on family farms.Ron Lemaire, president of the Canadian Produce Marketing Association, echoed these concerns, stating, “We are seeking a fit-for-purpose tool to protect our sector.”Wholesalers, including Earth Fresh Farms Inc., opposed the bill, warning it could raise consumer prices by at least 5%. Despite this, Davidson dismissed the criticism, arguing that vested interests sought to maintain a “status quo” that left farmers vulnerable.“There are a lot of people who came out against the bill — some senators, the Superintendent of Bankruptcy — who admitted to a lack of knowledge of the produce industry,” Davidson said. “But they also had an interest in maintaining the status quo they admitted wasn’t working for fresh fruits and vegetable suppliers.”Davidson underscored the unique nature of produce shipments, explaining, “A cucumber is not the same as a sheaf of wheat.” Unlike grains, fruits and vegetables can spoil within days, making existing provisions in the Bankruptcy and Insolvency Act inadequate.Private bills addressing bankruptcy law are rarely successful. The last significant amendment, passed in 2023, aimed to protect workers' pensions and took nearly five decades to gain approval. The passage of Bill C-280 reflects the culmination of relentless advocacy by farmers and their allies.“This collaboration with industry experts ensures we addressed the problems they were facing,” Davidson said, highlighting the bill’s transformative potential for Canada’s produce sector.
