WASHINGTON D.C. - The USDA has filed an administrative action against Snokist Growers, a Yakima, Washington-based company, for failing to pay for produce under the Perishable Agricultural Commodities Act (PACA).

The company allegedly failed to pay eight sellers for 402 lots of produce valued at $696,853, according to a USDA press release.

Because of these violations, Snokist Growers will not be permitted to operate in the produce industry until July 25th, 2016. After this date, it will again be eligible to reapply for a PACA license.

Snokist Growers' principals, Belinda Cole, Jim Davis, Kailan Dunn, and Dave Olsen, may not be employed by or affiliated with any PACA licensee until July 25th, 2015. After this time, a company may once again employ these individuals, provided it posts a USDA-approved surety bond.

In the past three years, the USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service