---
title: "Check whether a produce business needs a PACA license"
url: "https://ailawframework.com/practice/agribusiness-and-rural-law/check-that-a-horticulture-produce-agreement-is-in-place-before-trading/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A38-OB20261022-11-US"
practice_area: "Agribusiness & Rural Law"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Check whether a produce business needs a PACA license

> Extract whether the person buys or sells fresh or frozen fruits or vegetables, the pounds in a day, whether the person negotiates sales for someone else, and any calendar-year invoice total for a frozen-only broker or…

Canonical page: https://ailawframework.com/practice/agribusiness-and-rural-law/check-that-a-horticulture-produce-agreement-is-in-place-before-trading/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Agribusiness & Rural Law](https://ailawframework.com/practice/agribusiness-and-rural-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Extract whether the person buys or sells fresh or frozen fruits or vegetables, the pounds in a day, whether the person negotiates sales for someone else, and any calendar-year invoice total for a frozen-only broker or a retailer. Do not decide that a license is required, and do not complete an application. |
| What the lawyer must review | The USDA Agricultural Marketing Service licensing page states that a person who buys or sells more than 2,000 pounds of fresh or frozen fruits and vegetables in any given day must be licensed. A person who negotiates a sale for someone else must be licensed on the first transaction and may be a commission merchant, broker, or growers' agent. A broker who handles only frozen fruits and vegetables is not subject until the invoice value of total negotiated sales exceeds $230,000 in a calendar year. A retail seller is subject once the invoice cost of fresh and frozen purchases exceeds $230,000 in a calendar year. Knowing operation without a license may bring a penalty of up to $1,200 for each violation and up to $350 for each day the violation continues. The page states license fees as of 2010: a base annual fee of $995 plus $600 for each branch or additional facility, with aggregate annual fees not to exceed $8,000. The lawyer treats the 2010 fees as a dated statement and checks the current fee. The trust page is the companion source on the trust a licensee maintains. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave the licensing decision with the lawyer. |
| Written for | United States |
| Applies to | [Check that a horticulture produce agreement is in place before trading](https://ailawframework.com/practice/agribusiness-and-rural-law/check-that-a-horticulture-produce-agreement-is-in-place-before-trading.md) |

## Checking plan

- What the AI does: Extract whether the person buys or sells fresh or frozen fruits or vegetables, the pounds in a day, whether the person negotiates sales for someone else, and any calendar-year invoice total for a frozen-only broker or a retailer. Do not decide that a license is required, and do not complete an application.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- The $995 and $600 fees are stated on the page as of 2010. They are not presented here as the current fee.
- The 2,000-pound, first-transaction, and $230,000 tests are different. The lawyer applies the one that matches how the person trades.
- The application PDF was not opened. This task does not describe its fields.

## Sources

- [USDA AMS, PACA licensing](https://www.ams.usda.gov/rules-regulations/paca/licensing) (checked 2026-10-22)
- [USDA AMS, PACA trust](https://www.ams.usda.gov/rules-regulations/paca/paca-trust) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*