March 24, 2020

Do Not Waive Your PACA Trust Rights

Due to coronavirus-related market disruptions, many of our grower and shipper members have received requests from their buyers – largely in the foodservice sector – to extend payment terms beyond 30 days. Be advised that extending payment terms beyond 30 days BEFORE the initial 30-day payment period has expired will waive your PACA Trust rights. However, you may work out a separate arrangement with your buyer(s) AFTER the 30-day payment period has expired.

For the time being, our guidance is to maintain the terms of your current contract without amendment to ensure that you retain your PACA Trust protections and priority status in the event your buyer(s) file for bankruptcy.

Please note that WG and our industry allies are in urgent communication with USDA seeking flexibilities in the PACA prompt payment terms. We will inform you of any developments.  

For more information or guidance related to your specific situation, please contact Bryan Nickerson at [email protected] or 949-885-2392.

Click here for additional information from USDA AMS on preserving your PACA Trust rights during the COVID-19 pandemic.