How Verdica Scores 1,000 Fresh Produce Dealers: Our USDA PACA Methodology Explained

For small business owners navigating the complex world of fresh produce trading, understanding who you're doing business with can mean the difference between profit and devastating losses. That's why Verdica has developed a comprehensive scoring system that evaluates 1,000 dealers, brokers, and commission merchants across the United States, providing you with the data-driven insights needed to make informed decisions.

Our latest analysis reveals compelling trends in the fresh produce industry: with an average Verdica score of 836 out of 850, the vast majority of entities demonstrate strong regulatory compliance. However, the distribution tells a more nuanced story that every produce business owner should understand.

The Scale of Our Analysis

Verdica's Fresh Produce platform continuously monitors and scores entities operating under USDA PACA (Perishable Agricultural Commodities Act) regulations. Our comprehensive database includes 1,000 active dealers, brokers, and commission merchants, representing a significant cross-section of the American fresh produce supply chain.

The scoring methodology draws from multiple regulatory data sources, with our most recent refresh on May 15, 2026, incorporating 50 new records from USDA market news and regulatory filings. This real-time approach ensures that small business owners have access to the most current compliance information when making critical business decisions.

Our analysis covers three primary entity types regulated under USDA PACA: dealers who buy and sell produce, brokers who facilitate transactions between parties, and commission merchants who receive produce for sale on behalf of others. Each category faces distinct regulatory requirements and compliance challenges that factor into our scoring algorithm.

Grade Distribution: The Numbers Tell the Story

The distribution of grades across our 1,000 scored entities reveals the overall health of USDA PACA compliance in the fresh produce industry. Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, 975 earned an A grade, representing 97.5% of all evaluated entities.

This exceptional performance rate reflects the mature regulatory framework established by USDA PACA and the industry's general commitment to compliance. However, the remaining distribution provides crucial insights for risk assessment:

• A Grade (850-750 points): 975 entities (97.5%)
• B Grade (749-650 points): 20 entities (2.0%)
• C Grade (649-550 points): 5 entities (0.5%)

The small percentage of B and C grade entities highlights the importance of verification before establishing business relationships. While these numbers may seem minimal, the financial impact of partnering with a non-compliant entity can be substantial for small businesses operating on tight margins.

Top Performers: Excellence in Compliance

Five entities achieved perfect Verdica scores of 850 points, demonstrating exceptional compliance with USDA PACA regulations and industry best practices. These top-performing companies include FOOD FOR HEALTH CO INC, VANAL DISTRIBUTING, RLFJ INC, S & R PRODUCE L L C, and LOPEZ.

These perfect scores result from consistent regulatory compliance, timely filing of required documentation, absence of PACA violations, strong financial indicators, and positive industry reputation metrics. For small business owners, partnering with such entities represents the lowest risk profile in terms of regulatory and financial exposure.

The achievement of perfect scores by these five entities across different business models—from distributors to specialty produce companies—demonstrates that excellence in compliance is achievable regardless of company size or market focus. This provides encouragement for smaller operators seeking to improve their own compliance standings.

Understanding the Risk Spectrum

At the opposite end of the spectrum, five entities received the lowest scores in our analysis, each scoring 524 points. These companies—HOWARD FARMS LLC, HAMDEN MARKETS LLC, CT FARMS LTD, PHOENIX VEGETABLE DISTRIBUTORS, and EAGLE FARMS INC—represent the highest risk category for potential business partners.

The 326-point gap between our highest and lowest scorers (850 vs 524) illustrates the critical importance of due diligence in the fresh produce industry. This substantial difference reflects varying levels of regulatory compliance, financial stability, and operational transparency that directly impact business risk.

Low scores typically result from factors such as outstanding PACA violations, delayed or missing regulatory filings, financial distress indicators, unresolved disputes with trading partners, or insufficient operational transparency. For small businesses, engaging with low-scoring entities without proper safeguards can lead to payment delays, product quality issues, or regulatory complications.

Our Scoring Methodology Breakdown

Verdica's scoring system evaluates entities across five key categories, each weighted based on its impact on business risk and regulatory compliance. The methodology incorporates both quantitative regulatory data and qualitative industry indicators to provide a comprehensive assessment.

Regulatory compliance forms the foundation of our scoring, accounting for 40% of the total score. This includes USDA PACA license status, violation history, penalty assessments, and resolution of outstanding issues. We analyze data directly from USDA databases, ensuring accuracy and timeliness of compliance information.

Financial indicators comprise 25% of the score, drawing from public filings, credit reports, and industry financial benchmarks. This component helps predict an entity's ability to meet payment obligations and maintain stable operations—critical factors for small businesses extending credit terms.

Operational transparency accounts for 20% of the scoring model, evaluating factors such as complete business registration information, responsive customer service, and clear business practices. Companies that operate with transparency typically pose lower risks for business partners.

Industry Context and USDA PACA Impact

The Perishable Agricultural Commodities Act, administered by the USDA, provides the regulatory framework governing fair trading practices in the fresh produce industry. Since 1930, PACA has protected farmers, distributors, and retailers by establishing standards for prompt payment, accurate product descriptions, and fair dealing practices.

Our analysis of 1,000 PACA-licensed entities provides insights into industry-wide compliance trends. The high percentage of A-grade entities (97.5%) reflects the effectiveness of PACA's regulatory framework and the industry's maturation over nearly a century of federal oversight.

However, small business owners must remember that PACA licensing represents only the baseline requirement for operating in the fresh produce industry. Verdica's scoring goes beyond basic licensing to evaluate ongoing compliance, financial stability, and operational excellence that determine real-world business risk.

Data Refresh and Accuracy

Maintaining current and accurate data is crucial for effective risk assessment in the fast-moving produce industry. Verdica's platform refreshes data continuously, with our latest update on May 15, 2026, incorporating 50 new records from USDA market news sources.

This regular refresh cycle ensures that significant changes in entity status—such as new violations, license suspensions, or financial distress—are reflected in scores promptly. For small businesses, this real-time approach provides early warning of potential issues with trading partners before they impact operations.

Our data sources include direct feeds from USDA PACA databases, federal court filings, state business registrations, financial reporting services, and industry news sources. This multi-source approach provides comprehensive coverage of factors affecting business risk in the fresh produce supply chain.

Practical Applications for Small Businesses

Understanding how to interpret and apply Verdica scores can significantly improve risk management for small produce businesses. Companies with A grades (like our top scorers achieving 850 points) represent the safest partnerships for new business relationships, extended credit terms, or large volume transactions.

B-grade entities (20 companies in our analysis) may still be viable partners but warrant additional due diligence. Small businesses should consider requiring shorter payment terms, smaller initial orders, or additional guarantees when working with B-grade companies.

C-grade entities (5 companies scoring below 650 points) require careful evaluation before engagement. While business may still be possible, small companies should implement strong risk mitigation strategies such as cash-on-delivery terms, letters of credit, or comprehensive insurance coverage.

The Power of Data-Driven Decisions

The produce industry's perishable nature and tight margins leave little room for bad business decisions. By leveraging Verdica's analysis of 1,000 dealers, brokers, and commission merchants, small business owners can make informed choices that protect their operations and improve profitability.

Our methodology combines regulatory compliance data, financial indicators, and operational metrics to provide scores that reflect real-world business risk. With 975 entities earning A grades and an average score of 836/850, the data demonstrates that most produce industry participants maintain high standards—but the outliers highlight why verification remains essential.

The 326-point spread between our highest and lowest scorers underscores the importance of due diligence in partner selection. For small businesses, the difference between working with a 850-point entity versus a 524-point company can determine success or failure in individual transactions and long-term business relationships.

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