Loading…

United Fresh offers important financial protection info to safeguard produce industry

unitedalertOne of the most important regulations supporting the fresh produce trade is the Perishable Agricultural Commodities Act, and especially the PACA Trust. The PACA trust enables produce sellers to have first priority for repayment of debts in the event of a customer’s bankruptcy. Produce sellers actually have higher priority than banks, tax payments or any other debts in the event of a dissolution of assets to debtors.

The United Fresh Produce Association released the following statement to members:
"We strongly advise you to be careful to not inadvertently waive your rights under the PACA trust. In discussions with the USDA PACA branch today, we have confirmed the following:

"All produce sellers — whether growers, shippers, wholesalers, or others should NOT enter into extended payment terms beyond 30 days, before the initial 30-day payment period is past. We know that many companies want to cooperate with one another, but extending terms before the end of the 30-day period waives your PACA trust rights and the ability to have preferential trust rights in the event of your customer’s bankruptcy.

"However, regulations DO ALLOW a seller and buyer to agree to a partial payment plan or enter into a payment schedule AFTER the 30-day period without losing your PACA trust rights."

The specific regulatory language provided from the USDA PACA branch is as follows:
Section 46.46.(e)3
If there is a default payment as defined in 46.46(a)(3), the seller, supplier, or agent who has met the eligibility requirements of paragraphs (e)1 and (2) of this section will not forfeit eligibility under they trust by agreeing in any manner to a schedule for payment of the past due amount or by accepting a partial payment.

The United Fresh Produce Association recommended if you have any questions, to consult with your own counsel for specific advice.

"We are working diligently on support for the sector and those that are facing financial devastation, but you should all be keeping detailed financial records and this is one step that you should be sure to follow in any case," United Fresh said in the statement.

 

FiveStar providing much-needed relief to Floridians
FiveStar Gourmet Foods has been crafting delicious, fresh and healthy products since 1999, and for the past four years has operated a state-of-the-art East Coast processing facility in Naples, FL. The company didn’t fully realize until now what an important grassroots contribution it would make in the local community. Working Read More ...
SEG says bye-bye to BI-LO banner
Southeastern Grocers Inc., parent company of BI-LO, Fresco y Más, Harveys Supermarket and Winn-Dixie stores, announced today a series of transactions aimed to ensure the company continues to thrive and support the long-term growth of its core banners. The company has made the strategic decision to no longer operate stores Read More ...
Watermelon board pivots to digital strategy
The National Watermelon Promotion Board is realigning resources to adapt to a new climate while focusing on summer sales. Unlike years past when summer months meant in-person events, the socially distanced approach adjusts marketing and promotional efforts to continue to position watermelon as the go-to choice for kids and Read More ...
Superfresh Growers berry season about to begin
Northwest berry season is only a week away, and Superfresh Growers and Norris Farms are excited to deliver premium blueberries and kiwi berries.  These two multi-generation family growers complement each other in farming, marketing and logistical expertise. Harvest is expected to start the week of June 9, with great Read More ...
Food Lion acquires 62 stores from Southeastern Grocers
Food Lion has entered into a transaction to purchase 62 BI-LO/Harveys Supermarket stores in North Carolina, South Carolina and Georgia from Southeastern Grocers. The addition of these stores will deepen the company’s ability to serve more customers with fresh and affordable products to nourish their families. “We are so Read More ...
NEPC announces cancellation of 2020 expo
Locally, nationally and globally, so much has changed in such a short time. The produce industry has been tested in ways that we probably never could have imagined, including at the New England Produce Council Inc. After much consideration, the NEPC board of directors has decided to cancel the 21st NEPC Produce Floral & Read More ...

Market Watch

the source pro-act

Western growing regions getting hit by rain, cooler temps

floral pulse