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  • The Financial Protection for Fresh Fruit and Vegetable Farmers Act – A new trust mechanism in the produce industry and its implications for lending

The Financial Protection for Fresh Fruit and Vegetable Farmers Act – A new trust mechanism in the produce industry and its implications for lending

Kenneth Rosenstein and Ali Gianni Zia of Miller Thomson look at the impacts on lenders of the new super-priority deemed trust in favour of agricultural suppliers, and consider how lenders may respond by tightening credit terms, increasing interest rates, or reducing loan availability to account for the heightened risk.