Release No.: 033-15
WASHINGTON, March 25, 2015 – The U.S. Department of Agriculture (USDA) has cited Farmers Processing Inc., Watsonville, Calif., for failure to pay for produce.
The company failed to pay one produce sellers $1,061,313 for 141 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, USDA and Farmers Processing Inc. entered into a consent decision barring the company from operating in the produce industry until Feb. 27, 2017, at which time it may reapply for a PACA license.
The company’s principal, Raymond Rodriguez, may not be employed by or affiliated with any PACA licensee until Feb. 27, 2016, and then only with posting of a USDA-approved surety bond.
Under PACA provisions, those individuals held responsibly connected to PACA violations including sole proprietors, partners, members, officers, directors, and stockholders, may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All PACA oversight actions are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $110 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.
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