Ottawa-Fruit and Vegetable Growers of Canada (FVGC) is calling on senators to reject amendments made by the Senate banking committee to a bill intended to give the produce sector bankruptcy protection for products sold in the U.S.

The bill from Scot Davidson, Conservative MP for York Simcoe, is already approved by the Commons. It would create a deemed trust to give Canadian fresh fruit and vegetable producers financial protection on sales to U.S. buyers who go bankrupt and do not pay. The produce industry has been seeking such protection since the U.S. in 2014 ended Canada’s special status in bankruptcy cases and the Harper government would not agree to provide the same protection to U.S. suppliers selling in Canada. 

The deemed trust would help secure payment in the event of buyer bankruptcy, providing stability and support to the industry while safeguarding Canadian food security,

FVGC said that during clause-by-clause review of the bill, the committee amended the bill to limit protections to growers and first-level distributors, said Massimo Bergamini, Executive Director of, FVGC. The amendment “significantly narrows the scope of the original bill, excluding critical components of the fresh produce supply chain from financial protection. This undermines the bill’s primary objective of providing comprehensive financial security across the entire sector—a necessity for ensuring food security and maintaining Canada’s competitiveness in a global market.”

The amended bill “would fall short of meeting the criteria required to reinstate Canadian produce sellers’ preferential access to the U.S. Perishable Agricultural Commodities Act (PACA) framework. For Canadian produce sellers, regaining this access is key to growing their ability to compete fully and fairly in our largest foreign market, the United States.”

When the bill comes up final debate, senators should reject the amendment and support the original wording. “If amended, the bill would return to the Commons for further study - from our perspective, this would effectively kill it.” MPs would have to restore the original wording and send it back the Senate.

The bill received support from all parties in the Commons. Davidson says the bill has become “all the more important as we look to address the high food prices, rising inflation and strained supply chains we see in Canada today.” Fresh fruits and vegetables have short shelf lives and, in most bankruptcy cases, the product has lost its value by the time a bankruptcy hearing can be held. Bankruptcies are far more common in the produce sector than other agriculture sectors.

This news item prepared for National Newswatch