Bill C-280

Financial Protection for Fresh Fruit and Vegetable Farmers Act

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

This enactment amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to provide that the perishable fruits and vegetables sold by a supplier to a purchaser, as well as the proceeds of sale of those fruits and vegetables, are to be held in trust by the purchaser for the supplier in the event that the purchaser has not fully paid for the fruits or vegetables and becomes bankrupt or the subject to a receivership or applies to the court to sanction a compromise or an arrangement.

[George Gilvesy, Chair, Ontario Greenhouse Vegetable Growers]

Mr. Chair and members of the committee, thank you for the invitation to present to you today on behalf of the Ontario Greenhouse Vegetable Growers. I am here today with Mr. Richard Lee, our executive director.

OGVG represents over 170 greenhouse vegetable growers across the province, producing over 3,900 acres of tomatoes, peppers and cucumbers. The greenhouse vegetable sector is one of the fastest-growing segments of Canadian agriculture. Our members generate $1.4 billion in farm gate sales as of 2022, a contribution of over 14,000 jobs to the workforce and a consistent track record of growth. The sector is a valuable contributor to the Ontario and Canadian economy, and it is the future of farming in Canada that is capable of yielding over 20 times more than conventional field farming as we manage the evolution of climate change.

With over 81% of our product exported to the United States, we are an export-dependent sector providing fresh, nutritious produce to consumers across North America. Our dependency on export and trade was confirmed during the pandemic that defined the integration of the food system across North America. This dependency correlates to the need for alignment on policies that impact our ability to compete sustainably in the global marketplace while managing the crisis on food costs to the consumer.

Canada’s approach to climate change presents a major challenge to our growers. The escalating price on carbon only works where users can feasibly transition to alternative energy sources. These transitions and timelines face significant barriers with the lack of available technology and the limitations of public infrastructure, primarily in the electrical grid. Canada continues to penalize food producers, while the United States adopts incentivization to achieve its climate change goals through the Inflation Reduction Act and its various programs.

In 2024 our members will pay over $18 million in carbon tax, net of the 80% relief we currently receive. This is scheduled to be over $40 million by 2030 based on current production if the 80% relief is maintained. In summary, over a 10-year period, our members will have paid over $242 million in carbon tax.

Canada is not an island, and we have great concern that policies around carbon and plastics will influence the continued growth and investment in greenhouse production throughout Canada. Greenhouses will continue to be built to satisfy consumers' increasing needs for food security and fresh produce, but the question will be whether that investment takes place in a jurisdiction that penalizes food production or in one that provides incentives. In the interim, however, we would encourage the swift passage by the House of Commons of Bill C-234 in its original state.

For years, our members have been consciously looking at improving the packaging options for our products. We have embraced the use of packaging that is recyclable to protect the integrity of our produce, providing food safety and traceability while offering consumers new options on ready-to-eat healthy snack-size produce products.

We have serious concerns, again, about the imposition of plastics rules that ignore many of these positive attributes while also increasing food waste and the potential costs of produce by an estimated 34%—according to Deloitte—and while negatively impacting healthy eating habits. This plastics policy will create two different market requirements for the U.S. and for Canada, which may lead to products being unavailable to Canadian consumers if shippers no longer consider Canada to be a viable market for their products.

In the context of producing food, we would offer this: Does it make sense to institute policies and direct taxes that have the impact of increasing food costs? Everyone needs food, and we again would suggest that incentivizing change may provide a better approach and outcome.

We also have comments on a few other points.

OGVG strongly encourages the swift passage of Bill C-280, which is currently in front of the Senate. Financial security is a critical aspect to supporting farmers, and this bill supports a long-standing gap in the produce sector. In addition, it will provide a corrective action on a long-standing trade irritant with the United States.

OGVG advises that in the context of climate change, Canada should consider a North American perimeter strategy on pests and diseases.

Based on previous outdated pest assessments, the CFIA believes these organisms will not survive our cold winters, but the weather is changing, and so is the availability of hosts in the expansion of greenhouses and indoor agriculture. Our pest risk assessments should be re-evaluated.

As a final comment, Mr. Chair, greenhouse producers do not have access to production insurance, and our current safety nets are not representative of controlled environment agriculture. In addition, our experience with AgriRecovery has been dismal, in spite of multi-million-dollar losses and a great impact on our membership.

Thank you for the opportunity to present today.

[Catherine Lefebvre]

Bill C-280 is very good for us. It represents financial security. Given the number of clients we have, I'd say it really represents financial security for Quebec.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you very much, Mr. Chair.

Thanks to the witnesses for being with us today.

My question is for Ms. Lefebvre or Mr. Léger Bourgoin.

Bill C-280 is now at the second reading stage in the Senate, and we hope it will receive royal assent as soon as possible.

Do you have a clear message for us regarding the direction and relevance of Bill C-280?

[Ron Lemaire, President, Canadian Produce Marketing Association]

Thank you, Mr. Chair, and good morning, committee members. I want to thank the committee for the opportunity to speak on the issues impacting Canada's horticultural sector.

CPMA, as you know, represents 850 companies growing, packing, shipping and selling fresh fruit and vegetables, and is responsible for 90% of the produce sales in Canada. In 2023 the Conference Board of Canada pegged our sector's contribution to the national GDP at almost $15 billion and found that the fresh produce supply chain supported over 185,000 jobs in rural and urban communities across the country.

The issues impacting the fresh produce supply chain are diverse and complex. First, fresh produce consumption is declining. This is a concern. Government support is needed to keep produce accessible to Canadians and make it easier for Canadians to meet Canada's food guide recommendation to fill half your plate with fruits and vegetables.

Year over year, consumption rates have decreased as food prices have increased. Canadian adults should be eating seven or more servings of fruits and vegetables daily, but recent reports found that 34% of Canadians are consuming just one or two servings per day. In fact, the latest Stats Canada numbers show that almost 80% of Canadians over the age of 12 are eating less than five servings a day.

There are both health and economic consequences to these trends. A recent report by Professor Krueger at the University of British Columbia found that as fruit and vegetable consumption has decreased, the economic burden attributed to low consumption in Canada has increased to close to $8 billion annually, a 60% increase since 2015. Supporting access to nutritious produce, including through a national school food policy and school meal program, could contribute significantly to Canadians' health and well-being, while also decreasing the government's health care spending.

Second, increasing overall access to fruits and vegetables across Canada requires government programs and policies to address the regulatory burden and significant challenges impacting our sector's ability to produce and distribute fresh fruits and vegetables, such as the availability and costs of labour, production costs, transportation and border access. The national supply chain office and the development of a national supply chain strategy are important opportunities for more effective cross-government collaboration to help ensure that Canadians can continue to put our essential products on their table.

Third, it is crucial to recognize the costs of adjusting our supply chain to meet the challenges posed by emerging sustainability and environmental policies. CPMA members have been showing leadership in addressing such areas as biodiversity, greenhouse gas emissions, carbon sequestration, food loss and waste, renewable energy, soil health, water conservation and much more. The fresh produce sector has also undertaken significant efforts to align with the government's zero plastic waste agenda. Since 2019, our sector has experienced a 17% decrease in plastic volumes due to industry programs to address the government targets. However, the produce industry remains concerned with recent ECCC proposals related to the fresh produce packaging elimination strategy and targets that are impossible to meet for our sector.

We are keen to work with the government to support and build on industry's substantial efforts with regulatory and policy initiatives that align with global practices and policies to ensure the sustainability and competitiveness of the agri-food industry, offer incentives for industry efforts, provide secure access to safe food for Canadians and do not create unintentional food waste or increase the carbon footprint of the Canadian food supply.

I would be remiss if I did not mention financial protection for produce sellers and the grocery code of conduct. CPMA is greatly appreciative of the support shown by all committee members for Bill C-280. We hope you will strongly encourage your Senate counterparts to prioritize the passage of this important legislation. Also, as an interim board member of the code, I can attest to the fact that everyone continues to work hard to introduce a voluntary code that is uniquely Canadian.

As noted earlier, the issues impacting our sector are very complex. We need to take a full food system approach. We have shared with the committee our list of recommendations for the 2024 federal budget. These recommendations include areas not covered in my remarks.

I would close with this: The government needs to make food a federal priority and promote effective policies to support the production and movement of perishable items like produce to ensure the long-term viability of the fresh produce supply chain in Canada.

Thank you very much for the opportunity to join you today. I'm happy to answer questions later.

[Marcus Janzen, Vice-President, Fruit and Vegetable Growers of Canada]

Thank you, Mr. Chair.

My name is Marcus Janzen and I have the privilege of serving as the vice-president of the Fruit and Vegetable Growers of Canada. I also, during the day, have a pepper greenhouse just outside of Vancouver, British Columbia, in Abbotsford.

I'm here before you to discuss the pressing issue of stabilizing food prices in Canada, a concern that deeply affects Canadian fruit and vegetable growers, as well as all Canadian citizens. FVGC represents approximately 14,000 farms, producing 120 types of crops, and we contribute about $6.8 billion to the Canadian economy.

A 2022 survey conducted by our organization revealed that close to 44% of our growers are operating at a loss presently, and three-quarters have difficulty offsetting production cost increases that would include the carbon tax, the P2 plastics program, tariffs on fertilizer and aggressive targets for reducing fertilizer emissions. Those challenges, including Bill C-234, risk the sector's affordability and sustainability going forward.

Bill C-234 is at a critical place. By eliminating heating and cooling exemptions to greenhouses and barns, this jeopardizes our competitiveness, as we heard from the previous witnesses, particularly relative to the U.S.

We propose a series of actions that would include the following: reject the proposed amendments to Bill C-234; remove the P2 plastics program in order to further evaluate, particularly when it comes to PLUs, the unintended impacts on costs and therefore food prices; and eliminate the fertilizer tariffs in order to not disproportionately negatively effect domestic producers. We need, again, the idea of having a more cohesive regulatory conversation with government before policies are in place. We would look for the quick passage of Bill C-280, which is essentially the PACA-like trust to be reinstated.

Lastly, we would support an increased resolve to bring the grocery code of conduct into reality.

That concludes my remarks.

Opposition Motion—Passage of Bill C-234 by the Senate

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, allow me to withdraw the comment and apologize. I want to recognize that the Bloc absolutely is in line with the NDP on abolishing the upper chamber.

The member is right. In addition to Bill C-234, there is a very important bill that we were proud to support, Bill C-282. There are a lot of supply-managed farmers in my riding who personally met with me. I met with many of their industry groups.

We were proud to support that piece of legislation, because we simply cannot trust Liberal and Conservative governments to honour the spirit of supply management. We agreed with the Bloc Québécois in putting that in legislation so that we can prevent future governments from negotiating away our supply-managed industries.

I want to give another shout-out. The member for York—Simcoe has Bill C-280 in the Senate. I hope that the Senate will respect the will of this House, because that is another important bill dealing with the Canadian Produce Marketing Association and the fresh fruit and vegetable sector.

Again, strong agricultural bills are coming from the House of Commons. I think one thing that Canadians deserve from us is for us to have consistency in our positions. If we look at the Conservative history at the Senate, it has been anything but consistent.

Financial Protection for Fresh Fruit and Vegetable Farmers Act

[The Speaker, Liberal, Greg Fergus]

The House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C‑280, under Private Members' Business.

The House resumed from October 19 consideration of the motion that Bill C‑280, An Act to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act (deemed trust — perishable fruits and vegetables), be read the third time and passed.

[Scot Davidson, Conservative, York—Simcoe, ON]

Mr. Speaker, Canada's fresh fruit and vegetable growers should be paid for the fruit and vegetables they grow, full stop. Bill C-280 will ensure that fresh fruit and vegetable suppliers are not unduly disadvantaged by the bankruptcy of a produce buyer.

The deemed trust established by this bill will also support the highly integrated produce trade between Canada and the United States. Farmers and other suppliers in Canada have been pushing for these measures for almost 20 years. The absence of a deemed trust has cost produce suppliers their farms and livelihoods and has jeopardized our domestic food security. With Bill C-280, we can finally change that.

This is a common-sense Conservative bill that has been supported by all parties in this House. I want to thank all members for that, especially the Conservative shadow minister for agriculture and agri-food, the member for Foothills; the chair of the Standing Committee on Agriculture and Agri-Food, the member for Kings—Hants; the member for Berthier-Maskinongé; and the member for Cowichan—Malahat—Langford for their support. It goes to show the cross-country support this bill has.

Bill C-280 will provide financial protection measures for those growing fruits and vegetables from coast to coast to coast. This includes asparagus in Quebec, sweet potatoes in Nova Scotia, and carrots in the soup and salad bowl of Canada, home to the Holland Marsh in my riding of York—Simcoe. Of course, this week we saw the leader of the official opposition clearly loved the Ambrosia apples in the great province of British Columbia. How about those apples?

I am also grateful to Ron Lemaire and Shannon Sommerauer from the Canadian Produce Marketing Association, Quinton Woods from the Fruit and Vegetable Growers of Canada, Fred Webber from the Fruit and Vegetable Dispute Resolution Corporation, Jody Mott from the Holland Marsh Growers' Association, and of course, my number one staff in Ottawa, Patrick Speck, who worked tirelessly on this bill with me, as well as my staff in the riding: Jennifer, Michael and Carol.

My thanks to Suzanne, my wife. I told her that it would all be worth it, all the long days and nights here in Ottawa, which I know all members can appreciate.

It is time we get this over the line. I urge members to support Bill C-280 when this is voted upon next week. I trust that legislators in that other place with the red carpet, who can be a little slow sometimes, will deal with it promptly, given the multi-party support for these measures. Like we say in York—Simcoe, “Be ready, Senators”.

Right now, Canadians are dealing with the high cost of food. With Bill C-56 and other measures, the government has been talking about stabilizing food prices. Bill C-280 is going to lower prices of fresh fruits and vegetables that Canadians need now, so we all need to get behind this.

Too often Canadians, especially rural Canadians, think we cannot work together in this place. They think we cannot get anything done and they believe that whatever is accomplished does not have any relevance to or impact on their lives. In rural communities, people band together every day. They are the foundation of what it means to be Canadian. They want to see this place work for them, they want to see the way it works for one another. I firmly believe that Bill C-280 sends a message to every produce farmer and supplier that we understand the issues they face and that we are committed to addressing them.

The hard work of passing this bill is nothing compared to the boots in the muck in the Holland Marsh, which all farmers face right across Canada, but I can tell colleagues this. We are going to get behind them with this bill. We are going to get it done. Let us get Bill C-280 passed for the farmers right across Canada.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Mr. Speaker, I am pleased to be here this evening to speak to Bill C-280, which was introduced by the member for York—Simcoe. He sits next to me here in the House, and he is certainly not afraid to make his voice heard when it comes time to defend our produce growers. The Bloc Québécois is pleased to join him in his efforts.

Many members of the Bloc Québécois would have liked to sponsor this bill. I am thinking, for example, of the member for Berthier—Maskinongé or the member for Salaberry—Suroît. I, too, could have introduced this bill, because there are a lot of produce growers in my riding of Mirabel. The bill could have also been introduced by the member for Joliette or the member for Repentigny. In short, we all care a lot about this issue.

I therefore want to thank my colleague. There are some nice moments in Parliament when we can say that we are working together to do important things. Perhaps this should have been done sooner. This also reminds us of the importance of private members' bills, because they are inspired by what we see on the ground, by the people and businesses in our ridings. It reminds us of the fundamental work that members must do on the ground. I truly commend my colleague and, obviously, he is invited to come visit the maple capital of the world, Mirabel, any time he likes.

Produce growers, meaning fruit and vegetable producers, are still facing major challenges that continue to grow. We have talked about production costs, the cost of fertilizers and raw materials, and the declining demand for certain niche products as people struggle to afford things that can sometimes be perceived as luxuries at the grocery store.

We have talked about the Conservatives running deficit after deficit when they were in government. Things went from bad to worse under the Liberals. They are the kings of deficits. We have talked about bargaining power. Sometimes, small producers have to negotiate with resellers.

Bad weather is also a factor. I met some produce growers this summer as part of the Canada summer jobs program. I visited some businesses. I met Léanne and Vincent from the Entre Ciel et Terre farm in Sainte‑Anne‑des‑Plaines, Stéphanie from the Complètement légume farm in Saint‑Augustin, and Cinthya from Tierra Viva Gardens in Saint‑Augustin.

As we walked around the plots, they told us that they had lost 100%, 50% or 75% of this or that crop because of the rains. These people do not make a lot of money. They are true artisans. This serves as a reminder, and we cannot stress this enough, of the need for compensation programs here in Ottawa. However, that file is not moving forward quickly.

We can talk about the difficulties associated with climate change, bad weather, labour shortages, Immigration, Refugees and Citizenship Canada and the issue of temporary foreign workers, which creates challenges for our businesses. Then, there is foreign competition, obviously.

It is important to protect these companies when they sell their produce to resellers. How does the current system work? The member for York—Simcoe helped me gain a better understanding of how it works when someone is a fruit and vegetable grower.

Say that an American grows apples and sells them to a grocery store, to a reseller. If the grocery store goes bankrupt, this American has protection. He is registered as a supplier and, if the grocery store goes bankrupt, the government recognizes the fact that, since the supplier has not been paid, these fruits and vegetables belong to him and he is immediately reimbursed. That is the American system. Until 2014, Canadian and Quebec producers benefited from this system because they could sell their produce in the United States. If they sold to a grocery store in the U.S. and the grocery store or chain went bankrupt, they could get reimbursed the same way. This meant that we were relying on the Americans to protect our own producers.

In 2014, the Americans looked at what Canada was doing and found that Canada was in bad shape, that it had a terrible approach. They realized that their producers would not be protected if they sold their produce in Canada. If a Canadian grocery store or reseller went bankrupt, the producers would not get paid unless they went through an extremely costly process, which no small producer would go through if they could avoid it. Logically speaking, our own farmers were not protected either. The Americans told us to wake up, smarten up and protect our farmers and theirs so that there could be some sort of reciprocity.

In 2014, when the Americans tried to clue us in and told us that they were sick of protecting our farmers for us, they thought this would make the Canadian government sit up. They thought they were alerting Canada to take action. What has happened since? Cue the crickets, because nothing happened. The federal government did nothing. Now our farmers are no longer protected either in the United States or here at home. That is tough.

In 2016, we had a new Prime Minister who said, “Canada is back”. That was two years later. He went to the Fruit and Vegetable Growers of Canada and promised to get Canadian farmers back into this U.S. program, which would require Canada to adopt certain measures. Then the same old thing happened that always happens with the federal government when things are urgent: it waited and waited and waited.

Today, a courageous MP decided he would table these changes in the government's place. All of us members who have farmers in our riding are proud of that. We are proud to support him. We think this bill should have been fast-tracked directly to the Senate. We think there should not have been any nonsense. We think that there has been enough nonsense since 2014, and this process should have gone faster.

Right now, if our farmers want help, there are mechanisms. For example, in the United States, they have to file suit. There is a mechanism requiring them to pay a deposit worth twice the amount of the claim. They do not have the means to do that. The idea is to deter them so they never get paid for their fruits and vegetables and the products they sold to a reseller. It is disrespectful to the farmers who feed us and feed our cities. I want to stress that part for those who do not represent agricultural ridings. We are all connected to those farmers in some way.

Not only is it disrespectful, but it is also completely out of touch with the reality of being a farmer. Farmers have plenty to do without having to go to court, hire lawyers and waste their time on administrative procedures. Farmers are on the ground, dealing with all the problems I listed. They are in the fields, the orchards and the greenhouses. They take care of their businesses and their workers. They deal with temporary foreign worker applications while Immigration, Refugees and Citizenship Canada takes its sweet time and the federal government does nothing to make the system better. That is what they do.

This bill will make their lives easier. It is going to restore justice. It is going to reduce the risks they bear in one of the riskiest sectors on the market. As we can see, it is getting harder and harder to attract new farmers, because it is not easy work. I want to thank the bill's sponsor for making all this easier for our farmers.

The bill will make the buyer of these products liable for the value of the shipment. The shipment will not belong to the buyer until the invoice has been paid. There will be a kind of priority list so that, if the person who has ordered agricultural products but has not paid their invoice goes bankrupt, the producer will be assured of getting paid without much trouble.

Right now, the system says that farmers have the right to get paid. Fifteen days after the bankruptcy, they have the right to recover the goods that were sold 30 days before. Do members see how little sense that makes for the agricultural industry? If any member of the House is opposed to this bill, I would challenge them to eat a 45-day-old salad or some withered old strawberries or blueberries. They can do it in the lobby and I will film it.

Under the current system, what we are telling farmers is to take back their rotten produce. That is how we are treating them. The current system is rotten. It needs to be changed. We need to move forward on this. This bill needs to move forward. The Senate needs to pay close attention to this so that this bill is passed quickly.

[Chris Bittle, Liberal, Parliamentary Secretary to the Minister of Housing]

Mr. Speaker, I am pleased to rise today to talk about Bill C-280, which was first introduced by the member representing the soup and salad bowl of Canada. I know you said not to come up with new riding names, but I think the hon. member appreciates it in this particular case. I would like to thank the member for getting the process started and for the important steps that have already been taken on the way to getting the bill through the parliamentary process.

The aim of the bill is to help our fruit and vegetable growers by reducing the financial risks they face. Growers and farmers work hard, take risks and provide Canadians with healthy produce. Furthermore, growers do not get paid in many cases until their produce goes through numerous steps of a long supply chain to get to the consumer. This is risky from a financial perspective, as the bankruptcy or insolvency of any of the players along the supply chain may result in the grower not getting paid.

The government has taken important steps to make things better for growers and farmers. One example is the passing of the safe food for Canadians regulations in 2018. However, the risk is not completely gone and we can still do more. We heard a lot from witnesses during the bill's study at the agriculture committee that our growers and farmers still face the problem of non-payment if a link in the supply chain becomes bankrupt or insolvent, which is a real risk already, given the tight profit margins. In short, this is why we are supporting Bill C-280.

We in the House agree that this bill is a good idea, but as we heard during the study of it at committee, it is not perfect and there are issues that the government and this House should continue to monitor to ensure that we maximize the bill's potential to assist growers. I note two issues in particular: first, the impact of the bill on access to affordable credit for growers and sellers and the fresh produce supply chain, and second, the potential for the bill to restore Canada's preferential access to the formal dispute resolution process under the United States' Perishable Agricultural Commodities Act, the PACA, which regulates the fresh produce sector and provides financial protection for sellers.

In committee, members heard from a witness who was concerned that the changes made by the bill might make banks less willing to give loans, or they might charge more when lending to fresh produce sellers. This is because the bill would change the creditor priority in insolvency, and such changes could cause lenders to react with high credit costs or lower availability to compensate for higher risks of non-payment.

This witness had extensive experience in the fresh produce industry in both Canada and the United States, and his concerns stemmed from the impact that the PACA had south of the border. He explained to the committee that in his experience, U.S. lenders reduced crucial operating credit lines for produce sellers or required additional security, because the PACA deemed trust is paid ahead of all other loans and lines of credit in a bankruptcy or other payment default. It is important to note that the Canadian Bankers Association also raised this when the Department of Industry consulted on this issue several years ago. However, this was a minority view at committee, and most fresh produce industry representatives downplayed these credit risks. The committee gave appropriate weight to their assessment, given their knowledge and experience.

I am noting the concern here to invite the government to monitor the situation in the months following the entry into force of the legislation so that corrective measures can be taken in a timely manner if Canadian lenders decide to take the same approach as U.S. lenders. Industry witnesses before the committee emphasized the importance of trade credit to the fresh produce supply chain and, as such, I believe we will want to make sure the bill achieves its intended objectives.

A second issue to consider is getting back Canada's preferential access under the PACA. Before 2014, Canadians, like Americans, could use the PACA for free. Unfortunately, in 2014, the U.S. rescinded Canada's preferential access.

At this stage, we do not know for sure if passing Bill C-280 will result in PACA access being restored, and as far as I know, parliamentarians were not provided with any direct confirmation from the United States. While the committee heard from industry representatives that they believed restoration was likely in that case, this is another area where attention should be paid at the implementation stage. I trust that the government will do all it can to ensure that Bill C-280 leads to the restoration of preferential PACA access should the bill become law and will monitor the situation closely and on an ongoing basis.

Finally, I would like to reiterate the point made by my colleague, the member for Kings—Hants. Seemingly small legislative adjustments such as Bill C-280 can have significant positive impacts on our agricultural community. We should look for other opportunities to help our farmers and growers through regulatory and legislative tweaks, which could have positive impacts without adding more to the budget. The member from Kings—Hants mentioned streamlining regulatory approvals for agricultural products as one example. I look forward to hearing more about this and other ideas from the members of our agricultural community, including the parliamentary secretary, who is very enthusiastic about all things agricultural.

In summary, Bill C-280 is a good step toward supporting our hard-working fresh fruit and vegetable growers and making sure Canadians continue to have healthy food on the table. Let us also keep watching to make sure the bill reaches its potential.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, before I get started in speaking to this great bill, I really want to pass on that today is a very special day for our family. Today is my 38th anniversary. Hello to Leigh, wherever she is watching me.

I rise to speak to Bill C-280, the financial protection for fresh fruit and vegetable farmers act. I want to thank my colleague from York—Simcoe for introducing this piece of legislation in Parliament. I know that the member for York—Simcoe represents Holland Marsh, which is known as the soup and salad bowl of Canada. The reality is that Bill C-280 would not only be support for fruit and vegetable growers and producers in this region but also all across Canada. That is why I am so excited to support this bill today.

As a former farmer myself, I know that farming is not just a business, but it is a way of life for many Canadian families from coast to coast. This way of life is not an easy one. There are significant risks and uncertainties that farm families take on every year to grow food that feeds the world. Producers face many uncertainties every year, including unpredictable commodity prices, Mother Nature and the ability to obtain revenue for their product. Producers are forced to work within a very limited growing cycle and one bad year could put the family farm business at risk.

One of the most significant things that can impact a producer is when a purchaser of their product declares bankruptcy. When a buyer declares bankruptcy, the impacts to the producer can be devastating. Many of the farmers I represent are grain, pulse and cattle farmers. While this bill would not directly impact them, they understand the importance of protecting producers from the insolvency of businesses that purchase their product.

When I was a young farmer, a few years ago, I was in a situation where our local grain buyer became insolvent. The situation was made worse for our farm and others in the area because the insolvent party was not only buying our product but was also selling us inputs for the next year's crop. Preventable moments like this put undue stress on family farm businesses. Because of the seasonal nature of farming, farmers plan months and years in advance to keep their businesses operating.

Therefore, when a buyer who is the main purchaser in an area suddenly goes insolvent, this puts undue stress on the entire area. By the way, we are talking about an area the size of P.E.I. That is how big the purchaser of our product was and it did take down the whole region. I am sure members can imagine the uncertainty for this entire area and the undue stress it would have put on farm families. Pricing everything else accordingly while simultaneously tracking inputs so that a farmer can maintain a cost coverage to keep profitable is enough of a challenge. Adding bankruptcy, an entirely separate issue, to the equation can create a whole range of complications, crippling farmers without warning.

The way the value chain is designed, it requires the farmer to have a buyer and contracts in place before they even step into the field. That means they need to enter negotiations on how much they will sell their pound of product for, without any guarantee that they will grow a crop. That means the Canadian farmer is forced to be all in. They can do everything right. They can get the product to the buyer's doors and then not get paid for the product. It is a devastating blow for anyone when they do not get paid for the hard work they do every day. While the current mechanisms within the Bankruptcy and Insolvency Act may be suitable for the wider agriculture industry and other sectors, the current approach does not work when fresh produce buyers become insolvent.

Fruits and vegetables are perishable. The shelf life of these products is not long. This is why the risk of the buyer becoming insolvent is so much more devastating to fruit and vegetable producers. Their products can rarely be recovered because they will have already spoiled. Without the ability to recover the product or access current mechanisms in the Bankruptcy and Insolvency Act, fruit and vegetable producers can face a significant loss that could very easily put them out of business. Imagine the effect this would have on a producer's insurance, their farm and their family. There are only so many hits one can take before the ship starts to sink.

The uncertainty of producers not being paid for their products is very real, but it is also avoidable if we pass this bill into law. Members do not need to just take my word for why this legislation is needed. They can listen to the Canadian fruit and vegetable producers who have rallied behind Bill C-280 in support.

Jan VanderHout, the president of the Fruit and Vegetable Growers of Canada, stated that this will have a very positive impact on our national food supply, lowering cost to consumers.

The chair of the Canadian Produce Marketing Association stated that, for too long, Canadian produce growers and sellers have shouldered the financial risk when selling their products. The challenges of the pandemic and the massive increases in costs they have experienced over the past few years have put many in an even more vulnerable position. He hopes that all members of Parliament will vote in favour of this important piece of legislation to support the long-term viability of their sector and send a message to their growers and sellers that we have their backs.

While I said there are reasonable protections for producers, there is a lack of protection for them within the banking industry itself. I believe that too often business people, with no understanding of how the agriculture industry operates, undertake uncalculated risks that could undermine the survival of the farms they do business with. That is why I am so grateful to my colleague for bringing this bill forward in the House of Commons and why I am so proudly supporting it.

As a lifelong farmer, I know that many farmers have faced challenges where they wished there was a mechanism in place to protect from the devastation of an insolvent buyer. It would allow producers to have more protection from the buyers who hold their very livelihoods in their hands. Bill C-280 would build that certainty into the financial landscape. This increased certainty would allow for reduced produce costs that could be passed on to the grocery cart of Canadians. With food inflation limiting how many fresh fruits and vegetables Canadians can afford, reduced costs are needed now more than ever.

This bill is a practical solution to a very serious problem. Farmers should not have to fear being shortchanged when their buyer goes insolvent. It is a common sense approach for the common people who feed our country and the world. The bottom line is that our agriculture producers need to get paid for what they grow. Anytime that system breaks down, the stabilization of the entire food supply is at risk. If we do not pass this bill, we are continuing to set up our fruit and vegetable producers for failure.

Now, more than ever, it is critically important that we send this very clear signal to our agriculture producers across the country. The NDP-Liberal government has neglected farmers for far too long. By passing Bill C-280, it has a chance to stand with Canadian producers for once.

In closing, I want to mention that one of Canada's newest vegetable producers, Vermillion Growers, earlier this year opened a state-of-the-art tomato greenhouse in Dauphin, Manitoba. The folks at Vermillion Growers are working tirelessly to become a leader in growing fresh, local produce that will feed Canadians across the country.

I am very fortunate to represent this new business in Parliament, and I know that Bill C-280 will support local growers just like them. I hope all members in the House will support Canadian fruit and vegetable producers by passing Bill C-280.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I am not sure what I did to deserve such applause and support from my Conservative colleagues, but I appreciate it. Sometimes it is possible to be transpartisan when one has good ideas. I tip my hat to my dear friends.

It is a great pleasure for me to rise in the House today to speak to Bill C‑280, which is extremely important for our farmers, particularly our fruit and vegetable growers. Bill C‑280 seeks to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to put vendors of perishable products, such as fruits and vegetables, at the top of the list by holding the production value in trust. Perishable goods are a special case when a company goes bankrupt because the supplier cannot simply take back its goods and resell them. This measure is necessary and our farmers deserve it. The Bloc Québécois strongly supports Bill C‑280.

As a representative of Quebec's agri-food capital, I am obviously very concerned about the agricultural industry and its artisans. I often say that they hold the only occupation that we need three times a day. That is why I want to thank the hon. member for York—Simcoe, who is sponsoring this bill in the House, and my esteemed colleague and friend, the hon. member for Berthier—Maskinongé, who is co-sponsoring it.

I know how important it is for our two colleagues and all my Bloc Québécois colleagues to pass this bill quickly. The protective measure it will bring in is desperately needed across Quebec. We look forward to seeing it implemented. I share their eagerness to finally see our fruit and vegetable suppliers protected, so they can avoid seeing their crops go to the compost pile without being able to do anything about it. Not everyone in the House is quite as keen, despite the unanimous support this bill has received. We asked for unanimous consent to send Bill C-280 directly to the Senate, but unfortunately, some members would not give their consent.

This is a long-standing demand. The Liberals promised back in September 2014 to address this issue with the Canadian Produce Marketing Association if they were elected in 2015. They reiterated their commitment in 2016. The NDP and the Conservatives also made similar promises in their election platforms. It was also in their platforms in 2021, so I have to wonder why this has taken so long and why Bill C-280 could not be fast-tracked to the Senate.

We are now in 2023. The first promise was made in 2014 and we are in 2023. Better sooner than later, but better late than never. I am pleased to see that we are near our goal, especially given that the implementation of our protection will also help remove an irritant in our relationship with our American neighbours.

The sector's request of such a bill has been so strong since 2014 because on October 1 of that year, the U.S. Department of Agriculture revoked preferential access from its legislation for perishable agricultural products from producers here at home. Up until that point, Canadian and Quebec farmers were protected by this legislation in cases where American purchasers declared bankruptcy. Since Canada, for its part, did not have a trust mechanism for cases of buyer bankruptcy that could have protected American farmers, the U.S. decided to remove that security from Canadian suppliers. In short, they did that in response to a gap in our legislation.

Although an alternative process has been developed between the two countries, it is extraordinarily cumbersome, especially for smaller companies, which have to undertake the tedious process of filing a lawsuit. If they decide to take on this bureaucratic ordeal, they must post a bond worth double the amount claimed in the lawsuit, according to the Canadian Produce Marketing Association. Then they are in a pickle, if I may say so. I am not just using that expression because we are talking about produce. In short, they are in a pickle and the major buyers know it. As a result, companies are forced to negotiate downward with the buyer, because they would still rather receive a fraction of the value of the fruits of their labour than nothing at all.

The U.S. is demanding that Canada provide protection similar to that offered by the U.S. Perishable Agricultural Commodities Act before it will again give Canadian producers access to its program. Passing the bill we have before us today will provide protection not only for our producers doing business domestically, but also, with a little good faith on the part of the U.S. administration, for those doing business with American buyers.

I just want to point out here that the U.S. Perishable Agricultural Commodities Act was adopted in the 1930s, so it is high time we adopted a similar mechanism.

I hope you will agree with me, Mr. Speaker, especially since you are my MP during House sitting weeks. I live in your riding while we are working here in Parliament. I hope you will hear my plea.

Over the course of many Parliaments, many committees have recommended implementing just such a measure. The Standing Committee on Agriculture and Agri-Food, which studied the bill, sent it back to the House without amendment. The committee approved it, with support from all the parties. Action on this is long overdue.

Before concluding, I want to make an aside and draw the House's attention to another issue related to food products and the difficulties that certain players in the supply chain may experience when a buyer goes bankrupt.

In my riding, there is a storage company that found itself in a difficult situation a few months ago. This company provides refrigeration and freezer services and serves as an intermediary in the transportation of perishable goods. After one of its clients went bankrupt, a bakery, the company ended up stuck with about 800 pallets of pies that did not belong to it. Since the bakery in question was under the authority of a trustee in bankruptcy at the time, the storage company could not dispose of the pies in any way. The situation went on for several weeks, causing major financial losses for the storage company since it could not get any income from the merchandise in question and it could not take on other contracts because the cargo was taking up half of its warehouse. The bakery finally hired a company to transport the stored merchandise, but that company was never paid for services rendered. The transportation company then turned to the intermediary, the storage company, for compensation for its losses, which put the storage company's financial viability at great risk.

At that point, I wrote a letter to the Minister of Transport and his parliamentary secretary. That was before the cabinet shuffle. The letter was cosigned by the Bloc Québécois transport critic, the member for Pierre-Boucher—Les Patriotes—Verchères. We felt that the intermediary was also a victim of the situation, and we asked the minister to consider including a provision in the Bills of Lading Act that would protect intermediaries responsible for goods in specific cases involving bankruptcy of the original business. Such situations become even trickier when perishable goods are involved, and I would like to take this opportunity to get everyone thinking about this issue.

In closing, to get back to the subject of my speech, let us pass this bill without delay, as its co-sponsor entreated us.

The House resumed from October 3 consideration of the motion that Bill C‑280, An Act to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act (deemed trust – perishable fruits and vegetables), be read the third time and passed.

[Jennifer O'Connell, Liberal, Parliamentary Secretary to the Minister of Public Safety]

Madam Speaker, I am very pleased to speak today about Bill C-280, a private member's bill introduced by the member for York—Simcoe. Allow me to extend my congratulations to the bill's sponsor on this important work as it aims to protect our fresh produce farmers and sellers who provide Canadians with access to fresh produce for their families.

Bill C-280, an act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables), addresses the need for payment protection in the fresh produce industry through insolvency law amendments in cases of buyer bankruptcy, receivership and large commercial restructuring.

The bill would create a special legal mechanism known as a “deemed trust” to pay the unpaid bills of fresh fruit and vegetable sellers ahead of all creditors if a buyer becomes insolvent. The deemed trust would provide important protection in insolvency proceedings to the sellers of fresh fruits and vegetables against unique payment risks faced by the fresh produce industry, such as the perishable nature of fresh produce.

Members of the Standing Committee on Agriculture and Agri-Food studied the bill with the assistance of testimony from representatives of the fresh produce industry and the bill was reported back to the House with unanimous support. With our support of Bill C-280, we hope to increase the likelihood that the United States will restore Canada's preferential access to the formal—