Canada passes bankruptcy protection akin to PACA trust
By
Tim Linden
Canada passes bankruptcy protection akin to PACA trust
By
Tim Linden
The Canadian Parliament passed legislation last week granting priority status to produce growers and shippers for unpaid product in the event that a buyer of their fruits and vegetables files for bankruptcy.
The new law, Bill C-280, is similar to the Perishable Agricultural Commodities Act trust amendment that was passed by the U.S. Congress in 1984. For the past 40 years, agricultural advocacy groups in Canada, as well as the United States, have been pushing for similar legislation with no success. In fact, in 2014 the U.S. Department of Agriculture eliminated Canada’s preferred access to