Like real estate, the sale of produce has a basic operating rule. But instead of ‘location, location, location,’ buyers and sellers should always ‘document, document, document’ their transactions. It is imperative that when entering into a sale contract that both a buyer and shipper know exactly what is expected of each other. Not only must conversations transpire between the seller and the buyer outlining the terms of sale, but negotiations must be memorialized in writing prior to shipment -- and not just printed on the invoice at time of sale.

What do “FOB Acceptance Final” and “Purchase After Inspection” mean according to the PACA?  Many shippers believe that selling produce under either of these terms is the ultimate assurance that the buyer will never have recourse once the produce is shipped and it arrives at contract destination. They are very clear and definitive terms indeed, but there are nuances to each of these two terms.

In my 35 plus years of advising Western Growers' members on their rights and responsibilities with sales contracts, I often hear the term "broker" used loosely in conjunction with the negotiating and follow through on sales contracts. This blog addresses the duties of a produce broker as defined under PACA. For different types of brokers, please see this LINK

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Produce Price Index

Think farmers are making most of the money from your grocery bill? Think again. Use the Produce Price Index (PPI) to find out the difference between how much you spend on fruits and vegetables and how much actually goes back to the farmer.

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