Insurance won't cut it when buyers default on payments say Canada's hort growers Friday, July 19, 2013 by SUSAN MANN Horticulture farmers are concerned the federal government is looking at insurance-based schemes as part of efforts to develop financial protection for produce sellers. Canadian Horticultural Council president Keith Kuhl says in the council’s June newsletter, Hort Shorts, this is a “grave concern and while we will continue to fully participate in the process an additional cost solution is not comparable to the no-cost option Canadians enjoy in the United States through provisions of the Perishable Agricultural Commodities Act (PACA).” Kuhl couldn’t be reached for comment. The American Perishable Agricultural Commodities Act ensures U.S sellers and Canadians operating in the American market get paid for their fruits and vegetables when companies go bankrupt or default on payments. Canada doesn’t have similar legislation to protect produce sellers and dealers here. That means Canadian farmers selling in the domestic market and American farmers exporting to Canada are at the back of the line in a long list of creditors trying to get paid when companies go belly up or default on payments. There are also provisions in the American Act to deal with delinquent buyers who are slow or refuse to pay. In the June Hort Shorts article, it says “the ultimate objective remains to develop a made-in-Canada solution that ensure the Canadian approach to financial risk mitigation provides comparable outcomes to what is offered in the United States.” James Watson, spokesman for Agriculture and Agri-Food Canada, says by email the Canadian Food Inspection Agency began public consultations on the policy framework for the new Safe Food for Canadians Act, which will include the possibility of a single licensing approach for producer dealers “for the purposes of fair and ethical trade.” The government is also pursuing discussions with stakeholders on other risk mitigation measures beyond licensing, he says. The work to develop financial protection for producer sellers is being done as part of the Canadian and American Regulatory Cooperation Council announced by Prime Minister Stephen Harper and American President Barack Obama in February 2011. The two leaders agreed to joint action plans to boost security, trade, travel, and increase regulatory transparency and coordination between the two countries. Ontario vegetable farmer Ken Forth of Lynden says insurance-based schemes are not what farmers want for protection from non-paying buyers. “I know something about the insurance industry,” he adds. “I can see a big problem with that one.” The Regulatory Cooperation Council is a joint effort between Canada and the United States and “insurance will not meet the reciprocity test” because the system in the United States is based on legislation to protect growers when buyers don’t pay, he says. “I know some people who have dealt with them (insurance companies) and it took 10 years” to resolve the matter, Forth notes. In contrast, the American legislation provides for “pretty much immediate” payment in cases of default. In addition, the American legislation enables farmers who haven’t been paid to have a restraining order put against the delinquent company’s account. “They have to pay or they’re not in business anymore,” he says. But an insurance-based system doesn’t address the delinquent company’s refusal to pay so the company can continue not paying other growers. Reimbursing growers through insurance doesn’t have anything to do with the company involved. “It has to do with the insurance company, which is another party out there so the guy could just keep on doing what he’s doing many times over,” says Forth. The plan that’s developed in Canada doesn’t have to mirror the American’s PACA. But the PACA can be used and made to work here, he notes. “We’ve been told by some experts that it could be made to work.” BF Ontario's chicken industry is in crisis says processor group Sheep abduction case returns to court in September
Farmers—protect yourself from fraud Thursday, February 6, 2025 Image by Gerd Altmann from Pixabay It can happen to anybody. It doesn’t matter how safe you are or how smart you are; there’s always a chance you are going to get scammed over something. And the agricultural community is no exception. One of the latest instances involves... Read this article online
Canadian tech leads the way for egg gender testing Wednesday, February 5, 2025 Photo by Erol Ahmed on Unsplash Canadian Egg Technologies and MatrixSpec Solutions Inc. have announced that their technology is delivering accurate in-ovo gender determination for white and brown eggs as early as the fourth day of incubation. Called a transformative breakthrough for... Read this article online
Nortera celebrates $25M expansion Wednesday, February 5, 2025 Nortera, a North American leader in frozen and canned vegetable processing, has celebrated the $25 million expansion of its Wright Street frozen warehouse in Strathroy, Ontario. This investment directly supports the local economy by sustaining over 270 jobs and strengthening... Read this article online
Profitable Pastures 2025 webinar series Wednesday, February 5, 2025 The Ontario Forage Council (OFC) has announced that its is back, providing best management practices for pasture and grazing managers. There will be three webinars airing daily from 7:30 pm to 8:30 pm EST over March 4-6, 2025. Registration is required, but there is no cost to... Read this article online
OFA says farmers appreciate risk management program funding Increase Monday, February 3, 2025 Ontario farmers are expressing their support for the January 28, 2025, announcement that the provincial government is expanding risk management funding for farmers. Over the next three years, the Ontario Ministry of Agriculture, Food and Agribusiness is phasing in a $100 million... Read this article online