Fresh Produce Market Report: How 1,000 Entities Score on USDA PACA Compliance

When you're running a small produce business, every supplier relationship matters. A single unreliable dealer can disrupt your entire operation, leaving you with spoiled inventory or unpaid invoices. That's why understanding the compliance landscape of fresh produce dealers, brokers, and commission merchants is critical to protecting your business.

Verdica recently analyzed 1,000 entities operating under USDA PACA (Perishable Agricultural Commodities Act) licensing requirements. The data reveals significant insights about market reliability, compliance patterns, and how to identify trustworthy partners in an industry where financial disputes can quickly escalate.

Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, 940 earned an A grade—demonstrating that the vast majority of licensed entities maintain strong compliance records.

This report breaks down the score distribution, highlights top and bottom performers, and provides actionable guidance for small business owners navigating the fresh produce marketplace.

Understanding the Verdica Scoring System

The Verdica Fresh Produce platform scores entities on a scale of 0 to 850, evaluating multiple compliance factors tracked by the USDA PACA regulatory framework. This isn't a subjective rating—it's a data-driven assessment based on objective regulatory records.

Our latest data refresh on July 7, 2026, incorporated 50 records from USDA market news, ensuring that scores reflect the most current compliance information available. The scoring methodology weighs factors including:

• Active USDA PACA licensing status
• Disciplinary actions or sanctions
• Reparation awards issued against the entity
• Payment complaint histories
• License revocations or suspensions
• Time in business under current licensing

For small business owners, these scores translate into practical risk assessment. A high score indicates an entity with clean regulatory records and reliable business practices. Lower scores signal potential red flags that warrant additional due diligence before establishing business relationships.

The average Verdica score across all 1,000 entities stands at 828 out of 850—a strong indicator that most USDA PACA-licensed entities maintain good standing. However, this average also masks important variations that every produce buyer or seller should understand.

Market-Wide Score Distribution: What the Numbers Reveal

The grade distribution across 1,000 entities tells a compelling story about the fresh produce industry's overall compliance culture:

• A Grade: 940 entities (94%)
• B Grade: 40 entities (4%)
• C Grade: 18 entities (1.8%)
• D Grade: 2 entities (0.2%)

This distribution reveals that the overwhelming majority of dealers, brokers, and commission merchants operate with strong compliance records. The 94% A-grade rate suggests that USDA PACA licensing requirements effectively maintain market standards.

For small business owners, this is encouraging news. It means that most potential partners you'll encounter in the marketplace have solid regulatory standing. However, the presence of 60 entities with B, C, or D grades underscores why verification matters—even in a generally compliant industry, risk exists.

The concentration of entities in the A category also suggests that maintaining top-tier compliance isn't exceptionally difficult for businesses committed to proper practices. The regulatory framework rewards consistent adherence to payment requirements, transparent dealings, and prompt resolution of disputes.

With only 2 entities earning a D grade out of 1,000 analyzed, severe compliance failures are rare—but the consequences for partnering with these outliers can be devastating for small businesses operating on thin margins.

Top Performers: The Gold Standard in Produce Compliance

Five entities achieved perfect Verdica scores of 850 out of 850, representing the highest standard of USDA PACA compliance:

1. SEXTON FOODS INC - 850/850
2. LAWRENCEBURG FOODS INC - 850/850
3. Premier Food Group, Inc. - 850/850
4. NOK FOODS LLC - 850/850
5. OH BUSTER JR INC - 850/850

What distinguishes these top performers? Perfect scores indicate:

• Zero disciplinary actions on record
• No outstanding reparation claims
• Continuous active licensing without lapses
• Clean payment histories with trading partners
• No complaint patterns in USDA databases

For small business owners evaluating potential suppliers or buyers, these entities represent the lowest-risk partnerships available. Their perfect compliance records demonstrate sustained commitment to industry standards and financial reliability.

It's worth noting that achieving a perfect score requires more than simply avoiding major violations. It reflects consistent attention to regulatory requirements, proactive license renewals, prompt dispute resolution, and maintaining financial stability sufficient to meet all payment obligations.

While these five entities represent the pinnacle of compliance, remember that all 940 A-grade entities maintain strong records. The key takeaway isn't that you should only work with perfect-score partners—it's that verification tools allow you to differentiate between strong, moderate, and risky relationships.

Bottom Performers: Understanding Risk Signals

At the opposite end of the spectrum, five entities tied for the lowest Verdica scores at 524 out of 850:

1. PARADISE PRODUCE - 524/850
2. GLOBAL GREENHOUSE LLC - 524/850
3. PHOENIX VEGETABLE DISTRIBUTORS - 524/850
4. MOODY'S MARKET INC - 524/850
5. CT FARMS LTD - 524/850

A score of 524 doesn't necessarily mean these entities are currently operating illegally or that all business with them should be avoided. However, it does indicate significant compliance concerns that warrant serious investigation before establishing trading relationships.

Lower scores typically result from combinations of factors such as:

• Past disciplinary actions by USDA PACA
• Reparation awards issued for payment failures
• Complaint patterns indicating dispute histories
• License suspensions or reinstatements
• Recent market entries without established track records

For small business owners, these scores serve as warning flags. Before extending credit terms, making advance payments, or committing to large orders with lower-scoring entities, consider:

• Requesting references from current trading partners
• Starting with smaller transactions to test reliability
• Requiring deposits or COD terms initially
• Verifying current financial stability through credit reports
• Checking for recent complaint activity beyond the Verdica score

The gap between top performers (850) and bottom performers (524) spans 326 points—a substantial difference representing clear risk stratification. This range demonstrates why automated verification checking should be standard practice for every new business relationship.

The USDA PACA Regulatory Framework

USDA PACA has regulated the fresh produce industry since 1930, creating a legal framework designed to promote fair trading practices and ensure prompt payment throughout the supply chain. Understanding this regulatory context helps small business owners appreciate what Verdica scores actually measure.

PACA requires dealers, brokers, and commission merchants handling fresh and frozen fruits and vegetables to obtain federal licenses. These licenses aren't mere formalities—they come with enforceable requirements:

• Prompt payment obligations: Dealers must pay for produce within agreed terms, typically 10 days
• Trust protection: Produce sellers maintain statutory trust rights over their goods until payment
• Dispute resolution: USDA provides reparation processes for payment conflicts
• Disciplinary authority: USDA can suspend or revoke licenses for violations

When you verify a partner through USDA PACA records, you're checking their history with this enforcement system. Entities with clean records have demonstrated compliance with payment requirements, avoided trust violations, and resolved disputes appropriately.

For small businesses, PACA represents critical protection. If a licensed dealer fails to pay for your produce, you can file a PACA claim and potentially recover payment through the statutory trust, even if the dealer declares bankruptcy. However, these protections only work when trading with properly licensed entities—another reason verification matters.

The regulatory body updates its databases regularly, with Verdica's latest refresh on July 7, 2026, incorporating 50 new records from USDA market news. This ensures that compliance scores reflect recent developments, including new licenses, disciplinary actions, or resolved complaints.

What Small Business Owners Should Do With This Data

Understanding market-wide score distributions is valuable, but applying this knowledge to your daily operations is what actually protects your business. Here's how to put these insights into action:

Establish Verification Protocols

Make compliance checking a standard step before establishing new supplier or buyer relationships. Just as you wouldn't hire an employee without checking references, don't commit to produce transactions without verifying USDA PACA standing.

For A-grade entities (94% of the market), verification provides confidence to move forward with standard terms. For B and C grades (5.8% combined), additional due diligence is warranted. For the rare D-grade entities (0.2%), consider whether the business opportunity justifies the elevated risk.

Adjust Terms Based on Risk

Your payment terms and credit policies should reflect compliance scores:

• A-grade entities: Standard industry terms appropriate to relationship size
• B-grade entities: Shorter payment windows or reduced credit limits initially
• C-grade entities: Secured payments, deposits, or COD until track record established
• D-grade entities: Cash transactions only, if engaging at all

This tiered approach allows you to participate in opportunities across the market while protecting your cash flow and inventory.

Monitor Existing Relationships

Compliance isn't static. An entity with a strong score today could face disciplinary actions or financial deterioration tomorrow. Periodically re-verify your regular trading partners, especially before increasing credit exposure or order volumes.

With an average score of 828/850 across the market, most entities maintain strong compliance—but the 60 entities scoring below an A grade demonstrate why continuous monitoring matters for risk management.

Understand Your Competitive Position

If you're a USDA PACA-licensed entity yourself, compare your compliance standing to market benchmarks. Are you among the 94% with A grades? If not, what specific factors are lowering your score, and how can you address them?

Your compliance reputation affects your ability to negotiate favorable terms with trading partners. Maintaining top-tier scores opens doors to better opportunities and larger contracts.

The Cost of Verification Versus the Cost of Failure

Small business owners often operate under tight budgets, making every expense decision critical. Is compliance verification worth the investment?

Consider the alternatives. A single failed transaction with an unreliable partner can cost:

• Lost product value: Unpaid invoices for delivered produce
• Spoilage losses: Inventory you can't move due to disrupted relationships
• Legal fees: Costs of pursuing payment through PACA reparations or civil courts
• Opportunity costs: Time spent resolving disputes instead of growing your business
• Relationship damage: Downstream effects if you can't fulfill commitments due to upstream failures

For a small produce business, even one significant bad debt can threaten operations. A $10,000 unpaid invoice might represent weeks of profit margin. The cost of basic verification checking pales in comparison to these potential losses.

Verdica's approach makes compliance verification accessible for businesses of all sizes. Rather than requiring expensive subscriptions or per-search fees that add up quickly, you can verify critical relationships when needed most.

Industry Trends: What the Score Distribution Suggests

Beyond individual entity evaluation, the aggregate data reveals important trends about the fresh produce industry's compliance culture:

High Overall Compliance

The 828 average score and 94% A-grade rate indicate that USDA PACA licensing requirements effectively maintain market standards. The regulatory framework works, creating accountability that benefits all market participants.

Clear Risk Stratification

The concentration of entities in the A category, with progressively fewer in lower grades, suggests that compliance challenges are the exception rather than the norm. This makes verification more valuable—you can quickly identify the outliers who warrant extra caution.

Enforcement Effectiveness

The small number of D-grade entities (just 2 out of 1,000) suggests that USDA enforcement actions effectively address the most serious violations. Entities that fail to maintain minimum standards either improve their practices or exit the licensed market.

Market Maturity

The overall strong performance reflects a mature industry with established best practices. Most participants understand PACA requirements and maintain compliance as standard operating procedure.

For small business owners, these trends are encouraging. You're operating in a market where regulatory oversight creates baseline reliability. However, the variations in scores remind us that individual evaluation remains essential.

Beyond Scores: Building Comprehensive Due Diligence

While Verdica scores provide valuable compliance intelligence, they should be one component of comprehensive due diligence, not the only factor in partnership decisions.

Consider these additional evaluation criteria:

• References from current trading partners: Direct feedback about reliability and business practices
• Financial stability indicators: Credit reports, public financial statements if available
• Operational capacity: Warehouse facilities, transportation capabilities, geographic coverage
• Product specialization: Expertise in your specific produce categories
• Communication responsiveness: How promptly and professionally they handle inquiries
• Contract clarity: Willingness to work with clear, written terms

Compliance scores tell you about regulatory history. These additional factors tell you about operational fit and business compatibility.

The most successful small produce businesses combine regulatory verification with traditional relationship-building and business assessment. Scores help you avoid high-risk entities and prioritize promising opportunities, but human judgment remains essential for building thriving partnerships.

Taking Action: Protect Your Business Today

The data is clear: while 94% of dealers, brokers, and commission merchants maintain strong USDA PACA compliance, 6% present elevated risks that could threaten your business. The difference between partnering with a top-scoring entity versus a bottom performer could determine whether your next transaction strengthens or endangers your operation.

Small business owners don't have the luxury of absorbing bad debts or recovering from major payment failures. Your margins are tight, your cash flow is precious, and every relationship matters. This makes verification not just smart—it's essential.

The fresh produce industry operates on trust, but trust should be verified. Before you extend credit, make advance payments, or commit significant resources to any dealer, broker, or commission merchant, take the simple step of checking their compliance standing.

You now understand what the scores mean, how entities distribute across the compliance spectrum, and what separates top performers from risky relationships. The question is whether you'll apply this knowledge to protect your business.

Look up any dealers on Verdica Fresh Produce — free for your first search. Verify the entities you're considering, compare their scores to market benchmarks, and make informed decisions backed by real USDA PACA compliance data. Your business deserves partners who maintain the same standards you do.

In an industry where relationships drive success and payment reliability determines survival, compliance verification isn't an optional extra—it's fundamental protection for your business's future.