Who is subject to a PACA license?
Any person or company who buys or sells perishable agricultural commodities in interstate or foreign commerce in an aggregate amount of 2,000 pounds or more on any day must obtain a PACA license. Produce growers are exempt from licensing as long as they only sell products of their own production. Retailers and frozen food brokers representing sellers are exempt from licensing until they purchase and negotiate sales of $230,000 or more worth of fruits and vegetables in a calendar year. Restaurants that purchase $230,000 or more worth of fruits and vegetables in a calendar year may or may not be retailers and subject to the PACA statute. Recent court cases have come to differing opinions as to whether restaurants are covered under PACA.
