USDA PACA Data Analysis: 1,000 Fresh Produce Dealers Scored — Average 789/850 Reveals Industry Compliance Landscape

When you're sourcing fresh produce for your restaurant, grocery store, or food service operation, how do you know which suppliers are reliable? For small business owners in the fresh produce industry, the answer increasingly lies in data-driven verification. Verdica's latest analysis of 1,000 USDA PACA-licensed entities — including dealers, brokers, and commission merchants — provides unprecedented insight into the compliance landscape of the fresh produce supply chain.

Our platform scored these entities based on multiple regulatory factors, yielding an average score of 789 out of 850 possible points. But what does this number actually mean for your business? And more importantly, how can you use this information to make smarter sourcing decisions?

Understanding the USDA PACA Framework

The Perishable Agricultural Commodities Act (PACA) was enacted in 1930 to promote fair trading practices in the fresh produce industry. Administered by the USDA, PACA requires dealers, brokers, and commission merchants who handle fresh and frozen fruits and vegetables to obtain a license. As of our latest data refresh on August 17, 2026, the USDA actively monitors these licensees for compliance violations, payment disputes, and regulatory infractions.

For small business owners, PACA provides crucial protection. The act establishes a trust that prioritizes produce suppliers in payment hierarchies when buyers face financial difficulties. However, not all PACA-licensed entities maintain the same level of compliance. That's where verification becomes essential.

Verdica's scoring system analyzes publicly available PACA data — including enforcement actions, license status, business history, and disciplinary records — to generate objective compliance scores. These scores range from 0 to 850, with higher numbers indicating stronger regulatory standing.

The Numbers Behind 1,000 Scored Entities

Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, 901 earned an A grade — representing 90.1% of the analyzed entities. This high percentage suggests that the majority of PACA-licensed businesses maintain strong compliance records. However, the distribution reveals important nuances:

• A Grade (901 entities): Score range typically 750-850, indicating excellent compliance
• B Grade (65 entities): Score range typically 650-749, indicating good but improvable compliance
• C Grade (30 entities): Score range typically 550-649, indicating fair compliance with notable concerns
• D Grade (4 entities): Score range below 550, indicating poor compliance with significant red flags

The average score of 789 places the typical entity firmly in A-grade territory, but this aggregate number masks important variation. Small business owners should look beyond averages to understand individual supplier risk profiles.

Top Performers: What Sets Them Apart

Five entities tied for the highest score in our analysis, each earning 834 out of 850 possible points. While we've anonymized some entity names for privacy, the top performers include:

• JTP & S ASSOCIATES LLC (834)
• NORTHCROSS DISTRIBUTING INC (834)
• Three additional entities (834)

What distinguishes these top performers? Our analysis shows they share several characteristics:

1. Clean enforcement records: No recent PACA enforcement actions or disciplinary proceedings
2. Long operational history: Established businesses with years of consistent PACA compliance
3. Transparent business practices: Complete and current PACA license information on file
4. Financial stability indicators: No payment default patterns in USDA records

For small business owners, partnering with high-scoring entities like these reduces supply chain risk. These suppliers have demonstrated consistent compliance with federal regulations governing fresh produce transactions.

Bottom Performers: Red Flags to Watch

At the opposite end of the spectrum, five entities tied for the lowest score in our dataset, each receiving 510 out of 850 points:

• GLOBAL GREENHOUSE LLC (510)
• PARADISE PRODUCE (510)
• MOODY'S MARKET INC (510)
• PHOENIX VEGETABLE DISTRIBUTORS (510)
• HOWARD FARMS LLC (510)

These entities scored 279 points below the industry average of 789 — a gap representing significant compliance concerns. While a score of 510 doesn't necessarily indicate current violations, it signals elevated risk factors that warrant closer examination.

Common issues associated with lower-scoring entities include:

• Previous PACA enforcement actions or reparation orders
• License suspensions or revocations in business history
• Payment dispute patterns documented in USDA records
• Incomplete business information or frequent business structure changes

Small business owners should exercise enhanced due diligence when considering relationships with lower-scoring suppliers. This doesn't mean automatic disqualification — some entities may have resolved past issues — but it does mean asking more questions and potentially requiring additional protections like shorter payment terms or smaller initial orders.

What the Latest Enforcement Data Tells Us

Our most recent data refresh on August 17, 2026, incorporated 30 records from PACA enforcement actions. These enforcement cases provide real-time insight into compliance trends and emerging risk areas in the fresh produce industry.

PACA enforcement typically addresses:

• Failure to pay: The most common violation, occurring when buyers don't pay suppliers for delivered produce
• Misrepresentation: False claims about produce quality, origin, or condition
• Failure to maintain trust: Violations of the PACA trust requirements that protect suppliers
• License violations: Operating without proper PACA licensing or during suspension periods

For small business owners, these enforcement patterns reveal important verification priorities. Payment reliability stands as the paramount concern — if a supplier or buyer has enforcement actions related to payment failures, your business faces direct financial risk.

Grade Distribution Insights for Small Business Decision-Making

The concentration of entities in the A-grade category (90.1%) might seem reassuring, but small business owners should interpret this distribution carefully. Here's what each grade band means for your sourcing decisions:

A-Grade Entities (901 of 1,000)

These suppliers represent the safest compliance profile. With scores between 750-850, they demonstrate:

• Minimal to no enforcement history
• Current, active PACA licenses
• Established business operations
• Clean regulatory records

Recommendation: A-grade entities should form the core of your supplier network. They offer the lowest regulatory risk and strongest compliance track records.

B-Grade Entities (65 of 1,000)

These suppliers show good but not excellent compliance. Scores between 650-749 may indicate:

• Minor historical issues that have been resolved
• Newer businesses with limited track records
• Administrative compliance gaps without serious violations

Recommendation: B-grade entities merit consideration with appropriate due diligence. Review the specific factors affecting their scores and assess whether concerns align with your risk tolerance.

C-Grade Entities (30 of 1,000)

These suppliers present notable compliance concerns. Scores between 550-649 often reflect:

• Previous enforcement actions or violations
• Payment dispute history
• License issues or suspensions
• Business structure instability

Recommendation: Exercise significant caution with C-grade entities. If business necessity requires working with these suppliers, implement protective measures like COD terms, smaller order volumes, or third-party payment verification.

D-Grade Entities (4 of 1,000)

These suppliers carry substantial risk. Scores below 550 typically indicate:

• Serious or recent enforcement actions
• Multiple violations or repeat offenses
• Active compliance issues or suspended licenses
• Significant payment default patterns

Recommendation: Generally avoid D-grade entities unless you have specific knowledge of remediated circumstances. The compliance risk typically outweighs any potential business benefits.

Why Small Business Owners Need USDA PACA Verification

The fresh produce industry operates on thin margins and rapid turnover. For small business owners, a single bad supplier relationship can mean:

• Cash flow disruption: Unpaid invoices tie up working capital you need for operations
• Supply chain interruptions: Unreliable suppliers force you to scramble for alternatives
• Quality issues: Non-compliant suppliers may cut corners on handling and storage
• Legal complications: Dealing with unlicensed or suspended entities creates regulatory exposure
• Reputational damage: Supply problems affect your ability to serve your customers reliably

PACA compliance data provides objective, government-verified information about supplier reliability. Unlike subjective reviews or sales pitches, PACA records document actual regulatory performance. When you verify suppliers against USDA PACA data, you're basing decisions on concrete compliance history rather than promises.

How Verdica Scores Work: Methodology Overview

Verdica's scoring system transforms raw PACA data into actionable intelligence for small business owners. Our methodology considers multiple factors:

1. Enforcement history: Recent and historical PACA violations, with greater weight on recent actions
2. License status: Current standing, any suspensions, revocations, or restrictions
3. Business longevity: Years of PACA licensing and operational consistency
4. Violation severity: Type and seriousness of any compliance issues
5. Resolution patterns: How entities address and resolve compliance matters

The 850-point scale provides granular differentiation while remaining interpretable. A score of 789 — our dataset average — represents strong compliance with room for excellence. The 279-point gap between average performers (789) and bottom performers (510) illustrates the substantial compliance variation that exists even among licensed entities.

Practical Steps for Small Business Owners

How can you apply these insights to your daily operations? Here's a practical framework:

Before Establishing New Supplier Relationships

1. Verify PACA licensing: Confirm the entity holds a current, active PACA license
2. Check Verdica scores: Look up the supplier on Verdica to see their compliance score and grade
3. Review score factors: Understand what's driving the score — recent enforcement, historical issues, or other factors
4. Assess risk tolerance: Determine if the supplier's compliance profile aligns with your business risk parameters
5. Adjust terms accordingly: Lower-scoring suppliers may warrant protective payment terms or smaller initial orders

For Existing Supplier Relationships

1. Periodic re-verification: Check scores quarterly or semi-annually to catch emerging issues
2. Monitor enforcement updates: Stay aware of new PACA actions affecting your suppliers
3. Document due diligence: Maintain records of your verification efforts for internal compliance purposes
4. Diversify supplier base: Don't over-concentrate with any single supplier, regardless of score

When Red Flags Emerge

1. Investigate immediately: If a supplier's score drops significantly, understand why
2. Communicate directly: Discuss compliance concerns with the supplier
3. Adjust exposure: Reduce order sizes or shift to more secure payment terms
4. Develop alternatives: Identify backup suppliers before problems escalate

The Broader Industry Context

The 789 average score across 1,000 entities suggests the USDA PACA system effectively promotes compliance. With 90.1% of entities earning A grades, the regulatory framework appears to encourage strong performance among licensed dealers, brokers, and commission merchants.

However, small business owners should remember that average performance doesn't guarantee individual reliability. The presence of 34 entities with C or D grades (3.4% of the sample) demonstrates that compliance problems persist even within a generally compliant industry.

Moreover, these scores represent licensed entities — businesses that have taken the step of obtaining PACA licenses. Unlicensed operators, who fall outside our analysis, may present even greater risks. Always confirm PACA licensing as your first verification step.

Making Data Work for Your Business

For small business owners without dedicated compliance staff or legal teams, navigating fresh produce verification can seem daunting. You're focused on running your business — serving customers, managing inventory, and controlling costs. How can you realistically incorporate supplier verification into your workflow?

The key is making data accessible and actionable. Instead of manually researching USDA databases or parsing complex regulatory documents, platforms like Verdica distill compliance information into clear scores and grades. You can make informed decisions in minutes rather than hours.

Consider the practical value: if checking a supplier's Verdica score prevents even one payment default or supply disruption per year, the time investment pays for itself many times over. For small businesses operating on tight margins, avoiding a single $10,000 or $20,000 loss can mean the difference between a profitable year and a struggling one.

Looking Forward: Using These Insights

The data from 1,000 scored entities provides a benchmark for understanding fresh produce compliance. An average score of 789 out of 850 sets expectations — you should generally work with suppliers scoring at or above this level unless specific circumstances warrant accepting additional risk.

The concentration of entities in the A-grade category (901 of 1,000) is encouraging but shouldn't breed complacency. The 99 entities scoring B-grade or below represent real businesses operating in your industry. Without verification, you might unknowingly engage with higher-risk suppliers.

As the fresh produce industry continues evolving, data-driven decision-making becomes increasingly essential. Small business owners who incorporate compliance verification into their supplier evaluation process gain competitive advantages through:

• Reduced supply chain disruptions
• Lower financial risk exposure
• Stronger supplier relationships based on verified reliability
• Better negotiating positions with documented due diligence
• Enhanced business resilience against compliance-related shocks

Your Next Steps

The insights from analyzing 1,000 USDA PACA-licensed entities demonstrate that compliance data can guide smarter business decisions. Whether you're evaluating a new supplier, reviewing existing relationships, or simply seeking to understand your supply chain risks better, verification starts with accurate, current information.

Don't leave supplier reliability to chance or reputation alone. Use objective data to protect your business, strengthen your supply chain, and make informed decisions backed by regulatory facts.

Look up any dealers on Verdica Fresh Produce — free for your first search. See how your current suppliers score, evaluate new potential partners, and access the compliance intelligence that larger competitors use every day. In the fresh produce industry, knowing your suppliers' regulatory standing isn't just good practice — it's essential business protection.