Producers growing produce in Canada operate in an environment of elevated risk when selling their product buyers. Currently, there is no protection in place for produce sellers to recoup any losses in the event a buyer becomes insolvent or bankrupt. In the United States there exists the Perishable Agricultural Commodities Act which provides protection to produce sellers in these situations.

KAP has signed onto several joint letters (link Financial Protection for Produce Sellers – Joint Letter) led by the Canadian Produce Marketing Association.

Update – June 2022

Scot Davidson introduced Bill C-280 (link Bill C-280) which creates a trust that address the concerns of produce sellers in the event a buyer becomes insolvent or bankrupt. The bill has support from all parties.