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

When you're sourcing fresh produce for your restaurant, grocery store, or food service operation, knowing who you can trust matters. A single bad transaction with an unreliable dealer can cost you thousands of dollars and disrupt your entire supply chain. That's why Verdica Fresh Produce has developed a comprehensive scoring system that evaluates 1,000 dealers, brokers, and commission merchants based on their USDA PACA compliance records.

Our platform transforms complex regulatory data into a simple score between 0 and 850, making it easy for small business owners to verify produce suppliers before signing a contract. Of the 1,000 entities currently scored, the average Verdica score stands at 790 out of 850, and 905 companies have earned an A grade—demonstrating that the majority of the fresh produce industry maintains strong compliance standards.

But how exactly does this scoring work? In this deep dive, we'll walk you through our methodology, explain what the numbers mean, and show you how to use Verdica scores to protect your business.

Understanding the USDA PACA Foundation

The Perishable Agricultural Commodities Act (PACA) was established in 1930 to protect farmers and produce businesses from unfair trading practices. Administered by the USDA, PACA creates a regulatory framework that governs transactions involving fresh and frozen fruits and vegetables across the United States.

Any business buying or selling fresh produce in interstate or foreign commerce with annual sales exceeding $230,000 must obtain a PACA license. This includes dealers (who buy and sell), brokers (who facilitate transactions), and commission merchants (who receive product on consignment). The USDA maintains detailed records of all licensed entities and publicly documents enforcement actions when companies violate PACA regulations.

Verdica's scoring methodology begins with this USDA PACA data. We continuously monitor the official PACA database, tracking licensing status, enforcement actions, disciplinary proceedings, and compliance history for every registered entity. Our most recent data refresh on September 28, 2026, incorporated 30 records from PACA enforcement actions, ensuring our scores reflect the latest regulatory developments.

This foundation of verified government data means you're not relying on subjective reviews or self-reported information. Every Verdica score is built on objective, documented regulatory compliance.

The Verdica Scoring Algorithm: Breaking Down the 850-Point Scale

Verdica's proprietary algorithm evaluates multiple compliance factors and converts them into a single score ranging from 0 to 850. This scale was intentionally designed to feel familiar—similar to credit scores—making it intuitive for business owners who may not have regulatory expertise.

Here's what goes into the calculation:

PACA License Status (Foundation Score): Active, valid PACA licensing establishes the baseline. Entities with current, unencumbered licenses start with a strong foundation, while those with expired, revoked, or suspended licenses face immediate score reductions.

Enforcement Action History: This is the most heavily weighted factor. We analyze the complete history of USDA enforcement actions, including formal complaints, reparation awards, violations, and sanctions. Each enforcement action type carries a different weight based on severity. Payment failures, trust violations, and criminal violations impact scores more significantly than administrative issues.

Recency of Violations: Recent compliance problems matter more than historical ones. An enforcement action from last month affects the score more dramatically than one from five years ago. Our algorithm applies a time-decay function that gradually reduces the impact of older violations while keeping them visible in the historical record.

Resolution and Remediation: Companies that promptly resolve violations, pay reparation awards, and demonstrate corrective action can recover score points over time. We track whether enforcement actions remain outstanding or have been satisfactorily resolved.

Pattern Analysis: A single isolated violation may be an anomaly, but repeated enforcement actions indicate systematic compliance problems. Our algorithm identifies patterns of problematic behavior and adjusts scores accordingly.

The result is a score that provides nuanced insight into compliance risk. A perfect score of 850 represents an entity with an impeccable PACA compliance record, while lower scores indicate varying degrees of regulatory concern.

Grade Distribution: What the Numbers Tell Us About the Industry

Of the 1,000 dealers, brokers, and commission merchants scored by Verdica, the grade distribution reveals important insights about fresh produce industry compliance:

• A Grade (750-850 points): 905 entities (90.5%)
• B Grade (650-749 points): 64 entities (6.4%)
• C Grade (550-649 points): 27 entities (2.7%)
• D Grade (below 550 points): 4 entities (0.4%)

This distribution demonstrates that the overwhelming majority of fresh produce businesses maintain strong compliance standards. More than nine out of ten scored entities have earned an A grade, suggesting that PACA regulations are generally well-understood and followed throughout the industry.

However, the 95 entities with B, C, or D grades represent real risk. These companies have documented compliance issues that small business owners should carefully evaluate before entering into transactions. The 4 entities with D grades—the lowest tier—have serious enforcement concerns that warrant extreme caution.

The average score of 790 out of 850 sits comfortably in the A range, reflecting the industry's overall compliance health. But averages can be deceiving. For your specific transaction, what matters isn't the industry average—it's the score of the particular dealer you're considering.

Top Performers: The Gold Standard

Several entities have achieved the highest scores in Verdica's current database, tied at 834 out of 850 points. These top performers include entities listed in our system with template labels, NORTHCROSS DISTRIBUTING INC, and JTP & S ASSOCIATES LLC.

These companies represent the gold standard of PACA compliance. Their scores reflect:

• Consistently active PACA licensing with no lapses or administrative issues
• Clean enforcement records with no recent violations or reparation awards
• Long compliance histories demonstrating sustained commitment to regulatory standards
• No pattern of problematic behavior in USDA records

While a score of 834 isn't the maximum possible 850, it represents exceptional performance in the real-world regulatory environment. Even the best-run companies may have minor administrative matters or historical issues from years past that prevent a perfect score. What distinguishes these top performers is the absence of serious violations and their consistent compliance trajectory.

For small business owners, partnering with entities in this score range minimizes compliance risk and provides confidence that you're working with reputable, professionally-run organizations.

Red Flags: Understanding Low Scores

At the other end of the spectrum, Verdica has identified entities with significantly lower scores that warrant serious concern. Several companies are tied at 510 points—the lowest scores in our current database—including HOWARD FARMS LLC, PARADISE PRODUCE, PHOENIX VEGETABLE DISTRIBUTORS, GLOBAL GREENHOUSE LLC, and HAMDEN MARKETS LLC.

A score of 510 falls deep into D grade territory and indicates substantial compliance problems. These scores typically result from:

• Multiple enforcement actions showing a pattern of regulatory violations
• Unresolved reparation awards indicating unpaid debts to trading partners
• Recent violations that haven't been remediated
• Serious violation types such as trust violations or payment failures

Does a low score mean you should never do business with these entities? Not necessarily—but it does mean you need to conduct thorough due diligence, understand the specific compliance issues, and potentially implement additional protective measures such as requiring payment before delivery or obtaining personal guarantees.

For small businesses with limited resources to absorb losses, the prudent approach is often to focus on higher-scoring partners where the risk profile is more favorable.

How to Use Verdica Scores in Your Procurement Process

Verdica scores are designed to integrate seamlessly into your existing procurement workflow. Here's how small business owners should use them:

Step 1: Check Before You Commit - Before signing a contract or placing a large order with a new supplier, look up their Verdica score. This takes less than a minute and can prevent costly mistakes.

Step 2: Set Your Risk Threshold - Establish internal policies about score minimums. Many businesses set 700 (solid B grade) as their threshold for new partners, only making exceptions for A-grade entities or with additional due diligence for lower scores.

Step 3: Review the Details - Don't just look at the number—click through to see the underlying USDA PACA data. Understanding the specific nature of any enforcement actions provides context that pure numbers can't capture.

Step 4: Monitor Existing Partners - Compliance status changes over time. Regularly re-check scores for your current suppliers to catch emerging problems before they affect you. Our September 28, 2026 data refresh incorporated 30 new enforcement records—any of which could impact a partner you're currently working with.

Step 5: Combine with Other Diligence - Verdica scores are a powerful tool, but they should complement, not replace, other due diligence. Check references, review financial statements, and visit facilities when appropriate.

The Role of Fresh Data: Why Regular Updates Matter

Compliance is not static. A company with a perfect record today might face an enforcement action tomorrow. That's why Verdica continuously refreshes our data from USDA PACA sources.

Our latest refresh on September 28, 2026, pulled 30 records from PACA enforcement files. These updates might include:

• Newly filed formal complaints
• Issued reparation awards
• Resolved violations
• License status changes
• Disciplinary actions

Each of these updates can impact an entity's Verdica score. A company that scored 820 last month might drop to 750 this month if they received a reparation award. Conversely, an entity at 680 could improve to 720 after resolving outstanding violations.

This dynamic nature of compliance data is precisely why fresh produce buyers need a continuously updated verification tool. The USDA publishes enforcement actions on an ongoing basis, and Verdica ensures you're always seeing current information—not outdated snapshots.

Beyond the Score: Building a Culture of Verification

While Verdica's 1,000 scored entities represent a substantial portion of the fresh produce industry, the broader lesson is about building verification into your business culture.

Small business owners in the fresh produce sector face unique challenges. Unlike manufactured goods with warranties and established return processes, fresh produce is perishable, time-sensitive, and subject to rapid value deterioration. A payment dispute with a produce supplier can't wait months to resolve—your product will have already spoiled.

PACA was created specifically to address these challenges, providing a statutory trust that protects unpaid sellers and establishing rapid dispute resolution mechanisms. But PACA only helps if you're dealing with licensed, compliant entities in the first place.

By making compliance verification a standard part of your procurement process—as routine as checking prices or inspecting product quality—you protect your business from unnecessary risk. The few minutes spent checking a Verdica score could save you thousands of dollars and countless headaches.

Why 90.5% A-Grade Entities Still Means You Need to Check

Here's a critical point that some business owners miss: even though 905 out of 1,000 entities (90.5%) earn A grades, you still need to verify every partner.

Why? Because the 9.5% with lower grades don't advertise their compliance problems. A dealer with a 520 score doesn't announce their enforcement history in sales materials. They look and sound professional, they may have impressive facilities and competitive prices, and they're legally allowed to operate under their PACA license even with compliance issues.

The only way to identify which category a potential partner falls into is to actively check. Verdica makes this verification free for your first search, removing any barrier to due diligence.

Think of it like food safety inspections. Most restaurants maintain clean kitchens and safe food handling practices—but you still want the health department conducting regular inspections because the minority that don't maintain standards can cause serious harm. The same principle applies to produce supplier verification.

Real-World Impact: What These Scores Mean for Your Bottom Line

Let's make this concrete with a scenario:

You're a small restaurant owner sourcing $5,000 worth of produce weekly. You're considering two potential suppliers—one with a Verdica score of 820 (A grade) and another offering slightly lower prices with a score of 540 (D grade).

The lower-priced supplier might save you $200 weekly, which sounds attractive. But their D-grade score indicates serious compliance issues—possibly including a history of payment disputes, trust violations, or quality complaints.

If a dispute arises—perhaps over product quality, delivery timing, or payment terms—you're now dealing with an entity that has a documented pattern of regulatory problems. You might need to file a PACA complaint, engage legal counsel, or absorb losses because the product perished before resolution.

Suddenly, that $200 weekly savings could cost you $10,000 in legal fees, lost product, and business disruption. The A-grade supplier might cost slightly more, but they bring substantially lower risk to every transaction.

This is the real-world impact of compliance verification. Verdica scores help you make these risk-adjusted decisions with confidence, understanding the full picture rather than just the upfront price.

Looking Forward: The Future of Produce Industry Compliance

As Verdica continues expanding our database and refining our methodology, we're seeing increasing adoption of compliance verification as a standard business practice in the fresh produce industry.

The 1,000 entities currently scored represent major dealers, brokers, and commission merchants across the United States. We continuously add newly licensed entities and update scores based on the latest USDA PACA data. Our goal is comprehensive coverage that makes verification accessible for every produce transaction.

We're also observing that transparency itself drives better compliance. When companies know their regulatory records are publicly scored and easily accessible, they have additional incentive to maintain strong compliance standards. This creates a positive feedback loop that benefits the entire industry.

For small business owners, this trend means an increasingly level playing field where compliance information is democratized. You don't need to be a large chain with in-house legal teams to access sophisticated supplier verification—Verdica provides enterprise-level intelligence in a format designed for small businesses.

Take Action: Verify Your Suppliers Today

With 1,000 dealers, brokers, and commission merchants now scored and an average Verdica score of 790/850, you have unprecedented access to USDA PACA compliance intelligence. Whether you're vetting a new supplier, monitoring existing partners, or simply understanding your supply chain risk, Verdica Fresh Produce provides the data-driven insights you need.

Remember: 905 entities earned A grades, but 95 did not. The only way to know which category your potential partner falls into is to check.

Look up any dealer on Verdica Fresh Produce—free for your first search. Protect your business with verified compliance data, and make every produce transaction with confidence.

The fresh produce industry operates on trust, timeliness, and compliance. Verdica gives you the tools to verify all three.