C-280 – The Financial Protection for Fresh Fruit and Vegetable Farmers Act – would create new protections for the farmers of perishable goods in the event that someone purchasing from them files for bankruptcy while they owe the farmer money. This involves changes to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act.
A few conditions must be met for this to apply:
- The farmer needs to provide with the invoice, or within 30 days of the delivery of the food to the purchaser, notice that they will be taking advantage of the powers C-280 grants them
- The purchaser has 30 days or less to pay the entire balance owed to the farmer
- The purchaser does not pay the farmer the entire balance when it’s due
If all of these conditions are met any proceeds from selling the fruits and vegetables is considered to be held in trust, and will be handled appropriately if the purchaser files for bankruptcy.
Progress
C-280 passed its Second Reading with everyone voting in favour and came back from the Standing Committee on Agriculture and Agri-Food without any changes.
It then went up for its Third Reading with Pam Damoff (Liberal, Ontario, Oakville North—Burlington) being the only person to vote against it. It will now be sent to the Senate.