The province has come to the table with support for farmers in the wake of the devastating closure of the BC Tree Fruits Cooperative, which is now applying for creditor protection.
“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,” Pam Alexis, minister of agriculture and food, said in a Tuesday press conference.
“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.”
The province will enhance its AgriStability program to raise the AgriStability compensation rate to 90 per cent 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.
A 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.
Get daily National news
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
This program will build on the successful extreme weather preparedness program and recognize climate-change events’ effect on the tree-fruit sector during the past few years.
“The BC Cherry Association is pleased with today’s announcement by the B.C. government,” BC Cherry Association president Sukhpaul Bal said.
“Extreme weather events over the past five years have been devastating for agriculture in B.C., and as resilient as farmers are, this support recognizes these sudden changes in climate go far beyond what they can handle.”
Premier David 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.
“We are appreciative of the province’s actions to support the tree-fruit sector, which has been grappling with significant challenges for the past four years,” BC Fruit Growers Association president Peter Simonsen said.
“The enhancements to the AgriStability program and the introduction of the Tree Fruit Climate Resiliency program are positive steps toward stabilizing our industry, and we are particularly encouraged by the development of a one-time Climate Change Response Fund that can provide immediate relief to our farmers who are on the front lines of climate change.”
Additionally, the Ministry of Jobs, Economic Development and Innovation has offered community transition team support to the Town of Oliver to assist adversely affected workers in the tree-fruit sector.
The province continues to work directly with producers to mitigate the impacts of the BC Tree Fruits Cooperative closure, including an industry-led emergency table created to find solutions to issues such as certifications for export, logistics and cash flow, as the Ministry of Agriculture and Food continues to connect growers to options for storage and packing facilities.
The ministry has also been directed to explore options to support the co-operative’s receiver and any private-sector interests in protecting certain functions of the BC Tree Fruits Cooperative to meet the needs of growers.
A statement from the B.C. Tree Fruits Cooperative issued Monday indicated that it decisided to file for creditor protection in the aftermath of a”liquidity crisis,” with stone fruit crops damaged by weather identified as “the final tipping point” in a series of factors.
Its board of directors had unanimously determined July 26, that due to extremely low estimated fruit volumes, weather effects, and difficult market and financial conditions, the co-operative would not be able to effectively operate the business moving forward.
More on Canada
On Aug. 6, the Canadian Imperial Bank of Canada issued a demand for repayment and notices under Section 244 of the Bankruptcy and Insolvency Act in respect of the debt currently due and owing by BC Tree Fruits Cooperative and its subsidiaries, Growers Supply Company Limited and BC Tree Fruits Industries Limited.
To downsize or liquidate the co-operative to maximize recovery for all stakeholders, on Monday, BCTFC filed for creditor protection in the British Columbia Supreme Court pursuant to the Companies’ Creditors Arrangement Act.
The hearing of the initial order in the proceeding is scheduled for Tuesday.
At this hearing, BCTFC seeks, among other things, a stay of all proceedings and remedies against BCTFC for 10 days, the appointment of Alvarez & Marsal Canada Inc. as the court-appointed officer of BCTFC, the approval of interim financing, and the scheduling of a comeback hearing for Aug. 23.
© 2024 Global News, a division of Corus Entertainment Inc.