An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables)
Financial Protection for Fresh Fruit and Vegetable Farmers Act. Royal assent June 20, 2024 (S.C. 2024, c. 9). Conservative private member's bill sponsored by Scot Davidson (MP for York-Simcoe). Amends the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to give farmers selling fresh fruits and vegetables a deemed trust over the proceeds from their unpaid produce when a buyer goes insolvent, with priority over secured creditors. Long-standing ask of the Canadian Produce Marketing Association after the loss of the equivalent US PACA-Trust protections at the Canadian border in 2014. Aims to give Canadian growers parity with their US counterparts in cross-border insolvency cases.
Status
Quick learn
Protects fruit and vegetable farmers when a buyer (grocery chain or distributor) goes bankrupt. Without this rule, farmers ranked behind other creditors and often got nothing. The bill creates a 'deemed trust' so unpaid produce shipments rank ahead of other unsecured debts.
Issues this bill touches
- Workers' Rights & Labour
Adds farmer-owed deposits for fruits and vegetables to the priority claims list in BIA / CCAA insolvency.
Legislative history
- First reading
First reading in the House of Commons.
View source - Second reading
Second reading in the House of Commons.
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Third reading in the House of Commons.
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First reading in the Senate.
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Second reading in the Senate.
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Third reading in the Senate.
View source - Royal assent
Royal assent received.
View source - Introduced
Tabled in the originating chamber by the sponsor.
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Reviewed clause by clause by a standing committee; amendments possible.
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Sponsored by
Scot DavidsonCONSERVATIVEOfficial source
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