In 1930, Congress enacted the Perishable Agricultural Commodities Act, 7 U.S.C. § 499e (also known as “PACA”) to promote fair trading practices in the produce industry.
To further protect the interests of the suppliers of perishable agricultural commodities, Congress amended PACA in 1984 by creating statutory trust provisions that resulted in the collection of millions of dollars in receivables with an incomplete or faulty understanding of what the trust is and how it works.
PACA’s administrative and statutory trust remedies provide important tools that allow growers and sellers of fresh fruits and vegetables to recover payment in the event of insolvency. Our attorneys are experienced in defending and prosecuting statutory PACA trust claims and working with the USDA through the administrative PACA process. Additionally, HBS’s Agricultural and Food team has provided extensive guidance to produce sellers regarding credit terms and credit evaluation processes that assist in the PACA collections process.