✔︎ Bill C-280, Financial Protection for Fresh Fruit and Vegetable Farmers Act

Bill

Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables)

Vote

Yea.

Rationale

C-280 seeks to create a “deemed trust” that would enable fresh produce sellers to demand return of the full proceeds from the sale of their products ahead of the claims of all other creditors in the case of a BIA and restructurings under the CCAA. The government would look to introduce an amendment to limit the deemed trust to “growers” rather than “sellers” to target the deemed trust at farmers and greenhouse growers of fresh produce, and to exclude large Canadian and US agribusiness and wholesalers as they would be captured in the definition of “sellers”. “Growers” will distinguish the new deemed trust from the existing limited super-priority for Canadian farmers, fishers, and aquacultures. The definition of “farm” in the current BIA super-priority means “land in Canada”, while “grower” would include US farmers and may provide additional parity with PACA that could support efforts to restore preferential Canadian access in the US.

Passed.

Bill Status

At second reading in the Senate