There is angst among some in the Canadian produce industry because the rules set up by an entity of America’s U.S. Department of Agriculture (USDA) has changed some rules regarding protection they receive when there is a dispute involving a produce transaction. However, it could be worse. What if the Canadians had absolutely no protection against unfair practices, something U.S. produce truckers have never had.
The U.S. government recently took away a trading privilege from Canadian produce companies that has been available for more than 75 years. The result is fruit and vegetable producers risk losing thousands of dollars, closing their businesses, or moving across the border into the U.S.
Canadian produce companies that were owed money from U.S. companies could pay $100 to start a legal process, under the Perishable Agricultural Commodities Act (PACA). This would happen when U.S. companies didn’t pay their bills on time, at all, or when the company declared bankruptcy.
However, in October 2014, the United States withdrew Canada’s privileged access to PACA after the Canadian government neglected to implement the same privileges this side of the border. Now Canadian fruit and vegetable producers have to pay double the amount of money they’re owed to get access to the unpaid funds. If they’re owed $100,000 for cucumbers for example, they have to pay $200,000 as a bond to get the process started.
For decades, this writer has advocated owner operators, small fleets and large fleets hauling fresh fruits and vegetables be afforded similar protections the USDA’s PACA provides for the produce industry. This would be invaluable for produce truckers facing unfair claims or deductions or rejected loads. However, the produce industry has always fought against such measures and the PACA has certainly shown no interest.
About the only recourse for produce haulers is going through the court system, which can be costly, time consuming and particularly difficult considering the fact the problem may have taken place thousands miles from the trucker’s home base. Otherwise, hope and pray you have a good truck broker or shipper backing you when such issues arise. — Bill Martin