Victoria (with files from CBC/Local Journalism Initiative) – CBC reports that the BC Tree Fruits Cooperative filing for creditor protection stems from the group’s “liquidity crisis,” with stone fruit crops damaged by weather identified as “the final tipping point” in a series of factors.
The co-operative announced in July that it was shutting down due to “extremely low” estimated fruit volumes, and “difficult market and financial conditions.”
It says the group received a notice from the Canadian Imperial Bank of Canada August 6 demanding repayment of debt, then filed for creditor protection in B.C. Supreme Court on Monday August 12 in an effort to “maximize recovery for all stakeholders.”
Meanwhile:
In a provincial statement, B.C. tree-fruit growers will benefit from three new or updated financial supports and changes to help stabilize their bottom line and overcome significant challenges posed by extreme weather, market instability and the recent closure of the BC Tree Fruits Cooperative.
The supports are part of a package of actions being taken to protect and strengthen the tree-fruit sector and support those whose livelihoods depend on it.
“Locally grown fruit is loved across B.C., but for the last few years, farmers and the industry as a whole have faced unprecedented challenges,” said Premier David Eby.
The Province is enhancing its AgriStability program to raise the AgriStability compensation rate to 90% and double the compensation cap for all farmers for the 2024 program year. This will provide an estimated $15 million in immediate relief to farmers in need. This enhancement will help stabilize farm income and help farmers manage the increasing risk due to extreme weather. Late enrolment will also be available for producers not enrolled in the AgriStability program.
The new Tree Fruit Climate Resiliency program will provide $5 million to help tree-fruit farmers buy equipment and pursue projects that were not eligible under previous programs. This will strengthen farm resilience and preparedness for extreme weather. This program will build on the successful extreme weather preparedness program and recognizes the effect of climate-change events on the tree-fruit sector during the past few years.
“This has been a challenging time for farmers, including B.C. fruit growers. Our government has been listening to them. What we are hearing is everyone is facing different challenges, but the common denominator is that farmers need help now with their bottom line,” said Pam Alexis, Minister of Agriculture and Food. “Today’s announcement reflects both short-term support with more money available to farmers through AgriStability payments, and longer-term support with a new climate resiliency program so growers can plan and ensure there is a sustainable supply of B.C. cherries, peaches, apples and other tree fruits in future years.”
To support the longevity and sustainability of the sector, Premier Eby and Alexis have directed the Ministry of Agriculture and Food to begin developing, in consultation with industry, options for a one-time fund with an emphasis on smaller producers.
More information for BC Tree Fruits Cooperative members as well as an online grower survey where growers can identify their immediate needs can be found online:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/animals-and-crops/crop-production/tree-fruits/information-for-bc-tree-fruit-cooperative-members
To access the AgriStability Enhancement Program, farmers must be enrolled in the federal-provincial AgriStability program. To enrol, visit:
https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs/agriculture-insurance-and-income-protection-programs/agristability-2024
