The B.C. government has unveiled a plan to help farmers amid the fallout of the BC Tree Fruits cooperative’s collapse.
On Thursday, the province said it had worked out a deal with the Investment Agriculture Foundation (IAF) of B.C. to ensure farmers are paid $4 million they’re owed for past harvests.
The money would serve as bridge financing while court action over the cooperative’s assets plays out.
In late August, the B.C. Supreme Court ordered the sale of the cooperative’s assets after the organization filed for creditor protection.
According to court documents, the co-op owes more than $53 million to secured creditors, including nearly $51 million to the Canadian Imperial Bank of Commerce.
In a media release, the Ministry of Agriculture said the plan would see the IAF pay co-op members out directly, and assume their position as creditors under the court process.
The ministry said the foundation would begin reaching out directly to growers to initiate the process in the weeks to come.
The province is also providing $100,000 to the BC Fruit Growers’ Association to help cover food-safety certification that the co-op used to provide.
“͞Our priority from the beginning has been working with growers to ensure they are receiving as many of the services the co-op provided as possible, including food-safety certification, access to storage and bins, and connecting with packing houses,” Agriculture Minister Pam Alexis said.
“This is why we set up an emergency table with the sector to work together on solutions.”
The ministry said that 120 of 179 apple-growing members of the co-op have been connected with packing houses since the organization folded, with about 73,000 bins of apples shipped so far.