Minnesota Wholesale Produce Dealers Act
The Minnesota law is broader than PACA in another aspect as this law applies not only to produce, but also to transactions in milk, cream or their products and to eggs and poultry.
Who is Protected?
Minnesota producers of the listed agricultural products who sell to Minnesota based wholesale dealers of food processors of the covered products.
Who is Subject to the Law?
Any Minnesota wholesale dealer or food processor who purchases or contracts with other Minnesota dealers or farmers for at least $500 any of the eligible products.
All claims for unpaid product, either under the statutory trust or under the bond must be filed within 40 days of the date that payment was due. If there is no payment period the claim must be filed within 50 days of the date of the transaction.
Special Provision of Minnesota Law
The Minnesota Wholesale Produce Dealers law has a special statutory trust which is very similar to PACA. Minnesota and New York are unique in that their state produce laws have protections similar to the PACA trust. Minnesota producers who wish to preserve their rights under the trust must send a trust notice to Minnesota Department of Agriculture and the Minnesota Secretary of State within 40 days of the date that payment was due on the produce and if there is no due date specified in the contract, within 50 days of the date of the transaction. Here is a sample trust notice link to the attachment I am sending, the Minnesota trust form notice.
Where are Claims Filed?
Bond claims are filed with the Minnesota Department of Agriculture and Markets, Fruit, Grain and Vegetable Division. Trust claims must be filed in the District Court of Minnesota where the licensee is located.
Is There a Bond Requirement?
Yes, licensees must be bonded.