Perishable Agricultural Commodities Act (PACA)

The Perishable Agricultural Commodities Act (PACA) is a federal law that helps ensure fair transactions in the fresh produce industry. It protects sellers of perishable agricultural products from unfair practices by establishing a system of licensing, reporting, and dispute resolution. PACA requires buyers to pay promptly and adhere to contractual terms, preventing fraud and financial losses. When disputes arise, the PACA Trust secures payment for sellers by placing the produce and proceeds in a trust until the obligations are fulfilled. Overall, PACA promotes transparency, trust, and financial integrity in the fresh produce marketplace.