Western Growers' Trade Practices and Commodity Services Department not only specializes in assisting members with PACA and DRC complaints, but also assists in the handling of carrier claims.
When supplies are tight, I tend to receive calls from our shippers who are experiencing inadequate supply, the inability to fulfill contracts and asking if they will be exposed to any potential liability for failure to ship.
Unfortunately, there is the rare Shipper, Freezer or Marketing Agent that goes out of business owing money to growers. Growers can avail themselves to the protections of the PACA Trust; however, in order for a grower to fully benefit under the PACA Trust, they must file a PACA Trust notice within a specific timeframe.
The following summary of a disputed sales transaction resulted in an Administrative Hearing and Decision and Order under the Perishable Agricultural Commodities Act (PACA). The parties’ names are redacted intentionally.
The good ol’ days of a grower or shipper selling the grower’s crop on a hand shake has long since passed. In order to properly protect your grower as well as yourself as a shipper, it is imperative and a best practice to have a written agreement (contract) drawn up so each party knows what is expected from each other. The agreement needs to be straight forward, transparent with no hidden agendas and most importantly, be signed by both parties prior to the start of the shipping season.
One of my first blogs written back in May of 2013 was on “Never Request a USDA Inspection.” In most circumstances that rational still holds merit, as it is the responsibility of the buyer to demonstrate a breach of contract, i.e. failing to make good arrival standards, which can only be determined by securing a USDA or Canadian Food Inspection Agency (CFIA).
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.