44th Parl. 1st Sess.
October 19, 2023 10:00AM
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.
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Mr. Speaker, New Democrats support this bill and want to see it advance.
This bill has already been the subject of many committee studies. My colleague from Cowichan—Malahat—Langford said recently that he has almost lost count of how many times, at different committees in different Parliaments, the bill has been considered. He went on to say that we have seen a recommendation for this type of measure to be enacted by the House of Commons.
The time is now. My NDP colleagues and I would like to see this bill pass through third reading to get to the Senate and start getting the traction it needs.
The Fruit and Vegetable Growers of Canada, the Canadian Produce Marketing Association, and the thousands of people they represent want that too. They are waiting for action. I reiterate the news from the member for Cowichan—Malahat—Langford, as well as the NDP caucus, that we look forward to the bill's speedy passage to the other place. We hope that it finds its way to the Governor General's desk to receive the royal assent quickly, because climate change is not waiting for government process.
Climate change is affecting growing seasons, shipping times and supply chains. It is contributing to Canada's ongoing infrastructure deficit. During the drastic flooding in B.C. due to an atmospheric river, B.C. got a first-hand view of how fragile Canadian supply chains are, because they rely on open roads, railways and ports. Let us add the black swan event of the global pandemic to supply chain challenges. Such black swan events are coming more often.
Since the start of the pandemic, it has been more difficult to transport goods, especially fresh fruits and vegetables, which have short lifespans and need just-in-time logistics. With small profit margins, alongside big impacts on food security, any wasting of food directly affects the bottom line of farmers and producers, and it limits how we get food on tables.
Many farmers in Canada are feeling the stresses of trying to make ends meet in this volatile business. They feel the pressure of feeding not only Canadians but also the world. Right now, the government does not have their backs when something out of their control affects their bottom line.
In Canada, we depend on farmers and producers to feed our communities. Food sovereignty is a life-or-death business, and we cannot leave farmers and producers without a safety net if we are serious about protecting food sovereignty in this country.
The fresh fruit and vegetable industry has been calling for support to prevent farms from going bankrupt because of the lack of protection. In the supply chain specifically, it would be very beneficial. Supply chains are becoming more and more unreliable because of climate change.
Food loss because of supply chain limitations cannot happen fully on the backs of those who grow and produce our food. We need farmers and producers to thrive so that people can eat healthy, affordable food. Food spoilage is not only incredibly expensive, but it is also harmful to the environment. It contributes to climate change. Farmers and producers need protection from that. The Liberal government needs to get serious about helping farmers reduce wasted food and recover from any losses that are out of their control.
Food waste alone increases carbon dioxide and biomethane emissions, contributing to a warming planet. With more droughts, fires and floods, farmers and producers become more susceptible to these events. It is more challenging to get food from farm to table. Producers, suppliers and retailers must all be supported and encouraged to help get food to tables. However, let us get back to the bill.
Farmers and producers of fresh fruit and vegetables are taking incredible risks and hits to their viability, with an increased risk of filing for bankruptcy. For example, Canadian producers and growers selling to markets in the United States once had equal access to payment protection under the Perishable Agricultural Commodities Act. Since 2014, however, they have not been allowed to file a formal claim under PACA until after they post a bond of double the value of their original shipment. This is an expensive, risky ask when product shipments can be delayed and affected by many different points of the supply chain.
In addition, let us talk about the risks of natural water resources in Canada becoming scarcer. The amount of water and the number of water restrictions are putting a strain on farmers and producers, adding costs and risks to their businesses. They need government support as they deal with these mounting risks.
New Democrats have supported and will continue to support farmers and producers. In 2015, the New Democrats' federal election platform promised to “introduce a payment protection program for produce growers”, and we mean it, among other measures to keep farms in their stewards' hands and to allow those businesses to make the money they deserve. Protection for our farmers is critical.
Canadian farmers are essential workers. During the pandemic, they continued to work to keep our stores supplied. As large grocery store chains continued to make record profits, they downloaded costs and risks to their suppliers. Farmers and producers suffered, with no legislated support. That lack of a safety net needs to be corrected.
I will close by saying this bill is imperative to reduce the risk for farmers and producers and to assist them in remaining viable. As climate change continues to negatively impact food security and food sovereignty, we need our farmers.
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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.
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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.
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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.
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