What is a PACA License and Who Must Have One?
A PACA license is a license that is issued by the USDA for US traders in produce. Most persons or legal entities that deal in produce trade in the United States are required by US law to have a PACA license.
Generally any US based merchant that receives more than one ton of produce at wholesale in a single day that was grown either in another state or in or foreign country must have a PACA license.
Retailers that receive more than $230,000 in produce that was produced outside their home state during a year must also have a PACA license. Cruise lines have been required to have PACA licenses under this rule.
While who sell only their own produce and do not sell produce for others are not required to have a PACA license. However, many farmers decide to obtain PACA licenses because it is far easier to qualify for the protections of the PACA trust if they do possess a PACA license.
Farmers with separate sales companies:
If a farmer grows his produce in one legal entity and sells it in another, the sales entity must have a PACA license.
Click for the PACA license Application