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Glossary

What is PACA?

The Perishable Agricultural Commodities Act, a US law that sets fair trading rules for fresh produce and creates a trust protecting unpaid sellers.

The Perishable Agricultural Commodities Act is a federal law, administered by the USDA, that governs trading in fresh and frozen fruits and vegetables. Most businesses that buy or sell produce above a dollar threshold need a PACA license.

PACA's trust provisions are what make it important to distributors. Produce, and the money from selling it, is held in trust for unpaid produce sellers, who can be paid ahead of other creditors. To keep trust rights, sellers must meet the payment terms and notice requirements, often by printing the statutory trust language on their invoices.

APFoodz can print the PACA trust notice on produce invoices. For legal requirements, consult the USDA PACA program and your attorney.

Source: USDA: PACA

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