USDA PACA Compliance Analysis: 1,000 Dealers Reveal Average Score of 790 and 89.8% A-Grade Performance

For small business owners in the fresh produce industry, understanding regulatory compliance isn't just about avoiding penalties—it's about building trust with suppliers, securing better payment terms, and demonstrating operational excellence. Verdica's latest analysis of 1,000 USDA PACA-licensed dealers, brokers, and commission merchants provides the most comprehensive look at compliance performance across the industry, revealing patterns that can help small operators benchmark their own standing.

Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, 898 earned an A grade, representing 89.8% of all entities analyzed. This exceptionally high performance rate suggests that most established produce businesses maintain strong compliance practices, but the gap between top performers and struggling entities is significant and instructive.

Understanding the Verdica Scoring System for USDA PACA Compliance

The Verdica scoring platform evaluates fresh produce businesses on an 850-point scale, analyzing multiple data points from USDA PACA records refreshed continuously—most recently on August 3, 2026. The scoring methodology examines license status, enforcement actions, complaint history, bond sufficiency, and operational duration to create a comprehensive compliance profile.

The average score of 790 across all 1,000 entities indicates that the typical USDA PACA licensee maintains strong regulatory standing. However, this average masks important variations in performance. The distribution breaks down as follows:

• A Grade (800-850 points): 898 entities (89.8%)
• B Grade (700-799 points): 78 entities (7.8%)
• C Grade (600-699 points): 24 entities (2.4%)

This concentration of businesses in the A-grade category demonstrates that regulatory compliance in the fresh produce industry has become table stakes rather than a competitive differentiator. For small business owners, this means that maintaining a score below 800 may signal operational issues that could affect supplier relationships and market access.

Top Performers: What Sets Them Apart

Five entities achieved the highest scores in Verdica's analysis, each earning 834 points out of a possible 850:

• NORTHCROSS DISTRIBUTING INC
• JTP & S ASSOCIATES LLC
• Three additional entities with exemplary compliance records

These top-scoring dealers, brokers, and commission merchants share common characteristics that small business owners can learn from. While Verdica scores incorporate multiple factors, entities scoring above 830 typically demonstrate:

1. Continuous USDA PACA license maintenance without lapses or reinstatements
2. Zero formal complaints filed through the USDA reparation process
3. Adequate bond coverage appropriate to transaction volume
4. Established operational history showing sustained market presence
5. Proactive compliance management rather than reactive problem-solving

For small produce businesses, these top performers represent the gold standard. Achieving a score above 830 requires consistent attention to regulatory requirements, prompt payment practices, and transparent operations. The 44-point gap between these leaders (834) and the industry average (790) represents meaningful operational differences that buyers and suppliers notice.

The Bottom Tier: Understanding Compliance Struggles

At the opposite end of the spectrum, five entities scored lowest in the analysis, each receiving 510 points:

• PHOENIX VEGETABLE DISTRIBUTORS
• HOWARD FARMS LLC
• GLOBAL GREENHOUSE LLC
• HAMDEN MARKETS LLC
• MOODY'S MARKET INC

The 324-point gap between top performers (834) and these lowest-scoring entities (510) represents fundamental differences in regulatory compliance and operational practices. Scores below 550 typically indicate serious compliance issues such as license suspensions, unresolved reparation cases, insufficient bonds, or patterns of payment disputes.

For small business owners, understanding what drives low scores is crucial for avoiding these pitfalls. Common factors associated with scores below 600 include:

• Active or recent PACA license suspensions
• Outstanding reparation awards or unresolved complaints
• Bond coverage gaps or insufficiencies
• Recent entry into the market without established track records
• Patterns of late payments or contract disputes

These low scores carry real business consequences. Suppliers may require cash-on-delivery terms, limit credit exposure, or refuse to work with poorly-rated entities entirely. For produce businesses operating on thin margins, these restrictions can prove fatal.

What the B and C Grade Categories Reveal

While the majority of entities earned A grades, the 78 B-grade businesses (7.8%) and 24 C-grade entities (2.4%) represent important lessons for compliance management.

B-grade entities (700-799 points) typically operate legitimately but face specific compliance challenges. Common issues in this range include:

• Recent minor complaints that have been resolved
• Brief periods of bond insufficiency that were corrected
• Limited operational history as newer market entrants
• Administrative delays in license renewals

For small business owners in this category, improvement is usually straightforward. Maintaining consistent payment practices, ensuring adequate bonding, and resolving any outstanding issues can typically move a business from B to A grade within 12-18 months.

C-grade entities (600-699 points) face more significant challenges. This scoring range often reflects:

• Multiple resolved complaints indicating pattern concerns
• Previous license issues that have been addressed
• Marginal bond coverage relative to transaction volumes
• Longer-term operational inconsistencies

Businesses in this category should prioritize compliance improvements immediately, as dropping below 600 points often triggers supplier restrictions and market access problems.

USDA PACA Context: Why These Scores Matter

The Perishable Agricultural Commodities Act (PACA), enacted in 1930 and administered by the USDA, establishes a licensing and regulatory framework for businesses buying and selling fresh and frozen fruits and vegetables in interstate and foreign commerce. All dealers, brokers, and commission merchants meeting minimum transaction thresholds must obtain and maintain USDA PACA licenses.

PACA's regulatory framework includes several key components that directly impact Verdica scores:

Licensing Requirements: Entities must maintain current licenses, which require renewal and ongoing compliance with USDA standards. License suspensions or revocations severely impact scores.

Reparation Process: PACA provides a formal complaint and reparation process for resolving payment disputes. Unresolved complaints, outstanding awards, and patterns of disputes negatively affect compliance scores.

Bonding Requirements: PACA mandates surety bonds for dealers and brokers, providing financial protection for suppliers. Bond sufficiency relative to transaction volume is a critical scoring factor.

Trust Protection: PACA creates a statutory trust for unpaid suppliers, providing additional payment protection. Violations of trust provisions represent serious compliance failures.

For small business owners, understanding these USDA PACA fundamentals is essential because they directly determine market access and supplier relationships. The average score of 790 suggests most businesses maintain adequate compliance, but the high concentration of A grades (89.8%) means that falling below this threshold carries reputational consequences.

Practical Implications for Small Produce Businesses

What does this data mean for small business owners operating as dealers, brokers, or commission merchants in the fresh produce industry?

Verification is becoming standard practice. As compliance data becomes more accessible through platforms like Verdica, suppliers are increasingly checking the regulatory standing of potential buyers before extending credit. The 0 records from the latest PACA entity search refresh on August 3, 2026, indicates continuous data monitoring, meaning scores reflect current compliance status.

The competitive baseline is high. With 89.8% of entities earning A grades, maintaining a score below 800 places a business in the bottom quartile of the industry. For small operators competing for favorable payment terms and access to premium suppliers, this matters significantly.

The gap between good and poor performance is enormous. The 324-point spread between top performers (834) and bottom-tier entities (510) represents fundamental operational differences. Small businesses should aim not just for license maintenance but for comprehensive compliance excellence.

Recovery from compliance problems is possible but takes time. The presence of 78 B-grade entities shows that businesses can operate successfully while addressing compliance issues, but moving from problematic scores to top-tier performance requires sustained effort.

Using Compliance Data to Strengthen Your Business

Small business owners can leverage this USDA PACA compliance data in several practical ways:

Benchmark your own performance. Understanding that 790 represents the average score and 800+ represents top-quartile performance allows you to contextualize your own compliance standing. If you're below these thresholds, prioritize improvements.

Verify potential partners. Before entering relationships with new suppliers or buyers, check their compliance scores. Working with entities scoring below 600 carries significant risk of payment problems or operational disruptions.

Identify improvement opportunities. If your score falls in the B or C range, analyze specific compliance gaps. Most improvements—resolving outstanding complaints, increasing bond coverage, maintaining license currency—are actionable within months.

Communicate your compliance strength. If you maintain an A-grade score, use this as a selling point with suppliers. Top-tier compliance can justify better payment terms and preferential treatment.

Monitor changes over time. With data refreshes occurring regularly (most recently August 3, 2026), compliance standings change as new information becomes available. Regular monitoring helps you track your trajectory and respond to issues promptly.

The Role of Verification in Modern Produce Commerce

The fresh produce industry operates on tight margins, perishable inventory, and extended payment terms—a combination that makes counterparty verification essential. The USDA PACA framework provides legal protections, but these protections work best when businesses conduct due diligence before problems occur.

Verdica's analysis of 1,000 entities demonstrates that compliance data exists in sufficient depth to make informed verification decisions. The clear gradation from top performers at 834 points to struggling entities at 510 points provides actionable intelligence for small business owners.

Of the 1,000 dealers, brokers, and commission merchants analyzed, just 24 (2.4%) scored in the C grade range (600-699 points), while 898 (89.8%) achieved A grades. This distribution shows that serious compliance problems affect a small minority, but identifying these problematic entities before entering business relationships can prevent significant financial losses.

Moving Forward: Compliance as Competitive Advantage

For small business owners in the fresh produce industry, regulatory compliance has evolved from a minimum requirement to a competitive differentiator. While the average score of 790 and the 89.8% A-grade rate suggest that most businesses maintain adequate compliance, the gap between leaders and laggards reveals opportunities for strategic advantage.

Top-performing entities like NORTHCROSS DISTRIBUTING INC and JTP & S ASSOCIATES LLC, each scoring 834 points, demonstrate that excellence is achievable. Their consistent compliance practices, clean regulatory records, and operational stability represent the standard that suppliers increasingly expect.

For businesses currently scoring below 800 points, the path to improvement is clear: maintain continuous license compliance, resolve outstanding issues promptly, ensure adequate bonding, and establish consistent payment practices. The 78 B-grade entities in Verdica's analysis show that businesses can operate successfully while addressing compliance gaps, but sustained improvement requires systematic attention to regulatory requirements.

The USDA PACA framework provides the regulatory foundation, but platforms like Verdica translate complex compliance data into actionable intelligence. As verification becomes standard practice in produce commerce, small business owners who understand their compliance standing and take proactive steps to strengthen it will gain meaningful advantages in supplier relationships, payment terms, and market access.

Take Action: Verify Before You Trust

Whether you're evaluating a new supplier, onboarding a buyer, or simply benchmarking your own compliance performance, access to current USDA PACA data is essential. Verdica's platform scores dealers, brokers, and commission merchants using the same methodology applied to the 1,000 entities in this analysis, providing consistent, data-driven compliance intelligence.

Look up any dealers on Verdica Fresh Produce—free for your first search. Understand who you're working with, verify their regulatory standing, and make informed decisions that protect your business in the complex fresh produce marketplace.