WASHINGTON, DC - The United States Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from the USDA.

Direct from the USDA Agricultural Marketing Service:

The following businesses and individuals are currently restricted from operating in the produce industry:

• Fernando Armijo Garcia, doing business as Armijo’s Distributors, operating out of Dallas, Texas, for failing to pay a $46,134 award in favor of a Texas seller. As of the issuance date of the reparation order, Fernando Armijo Garcia was the sole proprietor of the business
• Mi Tierra Dist., operating out of Pharr, Texas, for failing to pay a $11,400 award in favor of a California seller. As of the issuance date of the reparation order, Manuela Cantu and Ruben Cantu were listed as officers, directors, and major stockholders of the business
• Jerry Produce Corp., operating out of Miami, Florida, for failing to pay a $34,062 award in favor of a Florida seller. As of the issuance date of the reparation order, Gerardo Gomez was listed as the officer, director, and major stockholder of the business
• Choice Farm, operating out of Patterson, New Jersey, for failing to pay a $61,209 award in favor of a New York seller. As of the issuance of the date of the reparation order, Jai Eui Song was listed as the officer, director, and major stockholder of the business
• Ramirez Family Corp., operating out of Portland, Oregon, for failing to pay a $7,009 award in favor of a California seller. As of the issuance of the date of the reparation order, Nelva Ramirez Sierra and Gilberto Ramirez Mendez were listed as officers, directors, and major stockholders of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.

USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

By issuing these penalties, USDA continues to enforce prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For contact information and to read the release in its entirety, click here.