Thank you, Chairman.
As most of you here know, I am Keith Currie, president of the Canadian Federation of Agriculture. CFA represents about 190,000 farm families and farmers and ranchers right across this country, from coast to coast to coast.
I want to be very clear from the outset that we are absolutely in support of Bill C-280. It's a bill for which I personally have been advocating for many years. I want to make it clear that we are certainly in support of it.
While this bill would provide the much-needed financial support to our fresh fruit and vegetable sector, which supports nearly 250,000 jobs in this country, it is about much more than that. Bill C-280 is about preserving the fibre of local and rural farming communities, maintaining the integrity of our food supply chains and supporting Canada's domestic food security.
As a farmer myself, I understand that risk management is a big part of what we do. From the moment that seed goes in the ground or that calf is born, there is a risk that I won't see a crop at the end of the day or see that calf mature into a milker or head to market. However, unlike cash crop, livestock or supply-managed producers in Canada, fresh fruit and vegetable producers carry additional risks and costs that are unique to the production of perishable goods.
These producers typically don't see a return on their investment until the product is sold and payment is collected, long after the farmer has passed on their product. What happens when those suppliers go bankrupt and can't pay the farmer, or simply walk away because they can't turn a profit? The farmer doesn't get paid, and the Bankruptcy and Insolvency Act does not provide effective protection for fresh produce sellers in Canada due to the high perishability of these products and the industry's longer payment terms. You simply cannot repossess spoiled fruit or recover your losses, as we've heard at length tonight.
The government has put forward solutions for other sectors within agriculture. For example, the Canadian Grain Commission holds roughly $1 billion of financial security from individual grain licence-holders to pay grain sellers in case a grain buyer becomes insolvent. However, no such financial security exists for the thousands of small and medium-sized fresh fruit and vegetable producers right across this country.
Bill C-280 would establish a critical financial protection mechanism for fresh produce sellers in Canada to help secure payment in the case of a buyer declaring bankruptcy. It's a tailored solution to a clear gap in our risk management tool kit for Canadian producers.
We must remember that these farmers play a vital role in supporting and supplying local communities with safe and nutritious food and vegetable products. In a context of escalating food prices, increased costs of production and supply chain dynamics that are threatening Canada's food security, can we really afford to leave these producers exposed any longer?
Our members across the country are strong supporters of Bill C-280 and look forward to this bill being passed as quickly as possible.
Thanks for this opportunity. I look forward to questions.