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Financial Protection for Fresh Fruit and Vegetable Farmers Bill

Bill to Amend--Second Reading--Debate Continued

February 8, 2024


Honourable senators, I stand before you today to support the long-term viability of the Canadian produce industry and an issue that directly affects the heart of our nation — our farmers and producers.

I’m proud to rise and speak to Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust — perishable fruits and vegetables).

This critical piece of legislation holds one of the keys to supporting Canada’s agricultural sector as it works tirelessly to feed not only our nation but also the world.

As an “agvocate,” I’m happy to see such a bill come to us — one that addresses discrepancies that have long left important members of Canada’s agricultural sector financially disproportionate.

At the outset, I would like to state that this is a finance bill. It is about bankruptcy protection. I want to assure my colleagues that I am not an expert on the Bankruptcy and Insolvency Act. However, I rise to speak to the need for this protection for the agriculture industry and this sector.

At the core of this bill lies the protection of perishable fruits and vegetables, which includes fresh and time-sensitive produce that can spoil quickly.

The bill proposes the creation of a deemed trust that ensures farmers and producers are given priority over the proceeds from the perishable goods they supply to buyers or creditors in the supply chain when buyers become insolvent or bankrupt. This essential safeguard proposes to protect our farmers’ interests during times of financial instability.

As we all know, supply chains are the intricate web that connects farmers and producers to consumers. In a vast country like ours, these supply chains play a vital role in sustaining our economy and ensuring the seamless flow of goods from farms to markets and, eventually, to our tables.

Agriculture, being a cornerstone of this network, not only caters to our domestic needs but also upholds our international obligations in the global food market.

The importance of a robust agricultural sector to our nation’s food security cannot be overstated. In the context of an increasingly interconnected world, disruptions in the supply chain can have far-reaching consequences.

The collapse of a single link in this chain, caused by a buyer’s or a creditor’s financial troubles, can have severe repercussions. It can lead to financial distress for our farmers, destabilize the market, cause our farmers to bear the burden of others’ bankruptcies without protection and compromise food security, not just within our borders but also for those who rely on our agricultural exports around the world.

Bill C-280 serves as a lifeline for farmers facing financial constraints, which are only amplified by the unpredictable nature of their profession. Our dedicated farmers contend with unpredictable weather patterns, rising production costs and stiff international competition. Amidst these challenges, the COVID-19 pandemic brought forth additional hurdles, like reduced demand, supply chain disruptions and labour shortages.

Supporting this bill is a recognition of their resilience and an affirmation of our commitment to easing their burden during difficult times.

As my honourable colleague sponsoring the bill in the other place noted, the worsening recession, inflationary pressures, increased prices, tax amendments and the lingering impacts of the COVID-19 pandemic have only increased the vulnerability of the produce sector.

This is underlined by the lack of critical financial protections available to Canadian produce growers for the losses they suffer as a result of an insolvent buyer.

While the existing mechanisms within the Bankruptcy and Insolvency Act may be suitable for the wider agriculture industry and other sectors, they do not provide a workable mechanism for when a fresh produce buyer becomes insolvent.

I was delighted to see, after years of requesting this protection, the bipartisan support this bill has garnered in the other place. In a political landscape often marked by division, it is a testament to the understanding that the welfare of our farmers and the security of our food supply transcend politics.

This underscores our collective responsibility as lawmakers to address critical issues that impact the livelihoods of those who put food on our tables three times a day, each and every day.

It is important to emphasize that the passage of Bill C-280 comes at no cost to the Canadian people. Supporting our farmers through this bill is an investment in the sustainability and resilience of our agricultural sector.

Ensuring that perishable goods are protected by a deemed trust is not an impediment to creditors or buyers; instead, it is an assurance that our farmers’ hard work and dedication will not go to waste — pun intended.

Might I add, colleagues, that the sponsor in the other place also noted that:

The financial protection established by Bill C-280 would reduce losses in the sector and lead to increased economic activity in Canada of $200 million to $235 million per year, increased value added in the Canadian economy of $104 million to $122 million per year, increased employment by more than 1,200 full-time jobs, and increased wages for Canadian workers by $59 million to $69 million per year.

What I take from this economic analysis, colleagues, is that Canadians have nothing to lose from this bill and much to gain.

In fact, the sponsor further noted that this bill would in fact save Canadian families and consumers anywhere between 5% and 15%, which could possibly save Canadian families between $300 million and $900 million on their annual fresh fruit and vegetable purchases.

This is good news during this time of rising food costs for all Canadians.

Agriculture is not just an industry; it is a way of life deeply ingrained in the fabric of our nation. The legacy of our farming families spans generations, with the passing down of knowledge and expertise from one era to the next.

By supporting this bill, we are protecting and nurturing this heritage, ensuring that future generations are inspired to carry forward the torch of farming excellence and not the possibility of losses due to others’ insolvency issues.

In conclusion, let us take this moment to demonstrate our unwavering support for Canada’s farmers and producers. The quick passing of Bill C-280 represents an opportunity to show the world that we stand united in our commitment to those who feed our nation and contribute to global food security.

Protecting perishable fruits and vegetables through a deemed trust not only is a practical measure to secure our supply chains and food security but also shows appreciation and support for our farmers’ invaluable contributions.

Supporting Bill C-280 will send a resounding message that here, in this chamber of sober second thought, and in Canada, we again recognize the critical importance of supporting our farmers, our producers and our processors. Their hard work, dedication and sacrifices deserve nothing less. By doing so, we strengthen the foundation of our agricultural sector and sow the seeds of prosperity for Canada’s future.

Thank you, colleagues, for your attention. I urge you to join me in supporting Bill C-280 for the greater good of our farmers, our food security and for Canada!

Thank you. Meegwetch.

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