Seems it’s an all too common practice to buy things and try to get away without paying for it. It’s called stealing or theft. I heard from a farmer who said he finally got his money for hay after a year or so of badgering the guy and dropping in at his place.

Art Smith, the CEO of Ontario Fruit and Vegetable Association, deals with that subject in a recent issue of The Grower magazine. He says the rate of fraudulent purchases in the fruit and vegetable industry is 10 times higher than in the grain sector. This reminds me of the cattle industry of the past.

Smith says the fresh fruit and vegetable industry is especially prone to fraudulent buying practices on part of some less than scrupulous buyers. We deal, he says, with a perishable crop, much of it unregulated, and impossible to differentiate from your neighbours if the produce has been removed from any identifying container.

Usually the buyer, over time, wins the growers confidence by paying for small loads of produce, developing a good rapport with the grower as a trustworthy buyer. After the relationship has been built, the "sting" takes place. A large order, an "IOU" and bingo, the buyer has left town.

Smith says this "free product" then makes its way to the marketplace where it competes with legitimately purchased product forcing down those prices and, in many cases, creating a loss.

The wholesaler or retailer has to then recover those losses and guess who pays for that? asked Smith. The supplier does.

He said the police to date have been very reluctant to intervene, mostly because of the difficulty in tracing and identifying the product; as such, the individuals involved often go unchallenged and the problem is left to repeat itself over and over.

Every year across Canada, tens of millions of dollars worth of produce leave farms with no intention of ever being paid for.

This is a lot of money and this lack of payment leaves a large hole in the pockets of farmers all across the country, says Smith.

The Fresh Produce Alliance, a coalition of the Canadian Produce Marketers Association, Canadian Horticultural Council, and the Fruit and Vegetable Dispute Resolution Corporation is working to address this problem, says Smith.

They have researched the problem and are making recommendations that concentrate on a number of priorities such as:

To achieve these, regulations would have to be put in place that would see the registration and licensing of dealers and wholesalers of produce to establish a "trust" system that would allow growers who are left unpaid to be able to recover at least partial payment for their produce.

Smith acknowledges that the formation of such a system would be no guarantee against less than scrupulous tactics (bankruptcy etc.), it will tend to drive fraudulent buyers elsewhere. Developing such a program requires legislative changes and that will take some time.

"But I personally believe that it is a step in the right direction," he said.

And just like the farmers selling hay to other farmers who have no intention of ever paying for the hay, Smith advises his fellow produce growers to be diligent, know the people you are selling to.

"Be cautious, and if you do get stung please advise your neighbours or local board so they can advise others in the industry. The more we know about these buyers the less chance they will have at ripping you off."