Frequently Asked Questions

Agricultural Law

PACA Trust Protection

I am not a USDA licensee. How do I protect my PACA trust rights in the apples that I grew and sold to a receiver in New York, who is now past due on his payment?

If you have printed the special PACA trust language on your invoices, it doesn't hurt; however, it is likely that you must protect your rights the old fashioned way -- by giving a written notice of intent to preserve the benefits of the trust to the purchaser of your apples. This must be completed within 30 calendar days (1) after expiration of the time prescribed by which payment must be made, as set forth in the USDA's regulations, (2) after expiration of such other time by which payment must be made, as the parties have expressly agreed in writing before entering into the transaction, or (3) after the time you have received notice that the payment instrument has been dishonored. In other words, if it has been 35 days since payment was due, you are probably out of luck. If not, give the receiver the Notice -- immediately. It must (1) be in writing, (2) include the statement that it is a notice of intent to preserve trust benefits, and (3) include the following information for each shipment: the names and addresses of the trust beneficiary [you] and the debtor [your receiver]. It must also include the date of the transaction, commodity, invoice price, and terms of payment. If the payment instrument was dishonored, it must state the date that you received notice. Finally, it must state the amount past due and unpaid.

Click here to view a sample notice of intent to preserve PACA trust benefits.