USDA will reopen the comment period for a proposed rule addressing trust protection and post-default payment agreements under the Perishable Agricultural Commodities Act (PACA), according to The Packer.
The new comment period began on Aug. 23, 2010 and will end on Sept. 22, 2010. The original 60-day comment period ended on August 9, according to an AMS news release.
The Agricultural Marketing Service "issued the proposal in response to concerns raised by the produce industry. PACA imposes a statutory trust on certain assets of persons or entities subject to the act that have not paid for perishable agricultural commodities. Trust-eligible produce transactions must meet certain criteria under PACA."
The regulations are clear that the maximum allowable payment term is 30 days for pre-transaction agreements, but are silent on payment terms for post-default agreements.
The proposed rule provides that if there is a default in payment, the seller, supplier, or agent could enter into a "written scheduled payment agreement of the past due amount while maintaining its trust eligibility." For more information on the proposed rule, click here to read a past US Ag&Food Law and Policy blog post on the subject.
For the full-text of the proposed rule, click here.
To read The Packer story, click here.
To read the AMS news release, click here.
Posted: 08/25/2010
