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House Bill

Bill C-280

44th Parl. 1st Sess.
May 09, 2024
Financial Protection for Fresh Fruit and Vegetable Farmers Act
  • This bill aims to protect fruit and vegetable farmers by amending the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. It states that if a supplier sells perishable fruits or vegetables to a purchaser, and the purchaser doesn't fully pay for them and becomes bankrupt or subject to receivership, the fruits, vegetables, and their proceeds of sale should be held in trust by the purchaser for the supplier. This means that the supplier would have a claim to these assets even if the purchaser is unable to fully pay for them. The bill also includes provisions for the supplier and purchaser to seek court directions and appeal decisions. The laws of the province where the purchaser resides or does business apply to this trust, and any conflicts with this bill are resolved in favor of the provincial laws.
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  • S1
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  • RA
  • Yea (335)
  • Nay (1)
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SteelmanSpren in Favour

  • The amendment in Bill C-280 is in favor of establishing deemed trusts for perishable fruits and vegetables sold by suppliers to purchasers. This measure ensures that the fruits and vegetables, as well as the proceeds of their sale, are held in trust by the purchaser for the supplier in the event that the purchaser becomes bankrupt or is subject to a receivership or applies to the court for a compromise or arrangement. This amendment is important as it provides financial protection for fresh fruit and vegetable farmers who sell their products to purchasers. By establishing a deemed trust, it guarantees that suppliers will be able to recover their unpaid balances in the event of a purchaser's insolvency. This is crucial for farmers who often operate on very thin margins and rely on timely payments to cover their expenses and ensure their viability. Furthermore, the amendment introduces specific requirements that suppliers must fulfill i

SteelmanSpren Against

  • One possible steelman argument opposing this bill is that it could create an unfair burden on purchasers and potentially lead to unintended consequences. By imposing a deemed trust on perishable fruits and vegetables, it may discourage purchasers from engaging in transactions with suppliers, particularly small and medium-sized businesses. The additional risk of being held liable for unpaid amounts could make purchasers hesitant to enter into agreements, leading to fewer outlets for suppliers to sell their products. This could ultimately harm the agricultural industry and disrupt the supply chain for perishable goods. Additionally, the complexity of implementing and enforcing this trust framework could result in administrative challenges and increased costs for all parties involved.
Senate Third Reading
  • May 9, 2024, 2 p.m.
  • In Progress
  • Read
Senate Second Reading
  • Oct. 26, 2023, 2 p.m.
  • Passed
Senate First Reading
  • Oct. 26, 2023, 2 p.m.
  • Passed

House Committee

44th Parl. 1st Sess.
September 20, 2023
Standing Committee on Agriculture and Agri-Food (AGRI)
Re. Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – …
  • Report 11 presented to the House
  • Hear!
  • Rabble!
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  • Hear!
  • Rabble!
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House Committee

44th Parl. 1st Sess.
June 21, 2023
Standing Committee on Agriculture and Agri-Food (AGRI)
Re. Bill C-280 Environmental Contribution of Agriculture
  • Wed Jun 21, 2023 05:10 - 05:36PM
  • Read
  • Watch
  • Hear!
  • Rabble!
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House Committee

44th Parl. 1st Sess.
June 12, 2023
Standing Committee on Agriculture and Agri-Food (AGRI)
Re. Bill C-280
  • Mon Jun 12, 2023 06:32 - 08:39PM
  • Read
  • Watch
  • Hear!
  • Rabble!
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House Motion No. 331

44th Parl. 1st Sess.
May 17, 2023, 3:55 p.m.
2nd reading of Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables)
House Third Reading
  • May 17, 2023, 2 p.m.
  • Passed