<p>The USDA filed administrative actions against La Merced Produce LLC under the Perishable Agricultural Commodities Act (PACA). The Georgia run company is accused of failing to make payments in the amount of 4,351,483 to 13 different produce sellers between June 2008 and July 2012. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>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. If the USDA rules that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. According to the press release, the punishment is far reaching for the company, its principals could not be employed by or affiliated with any PACA licensee for one year, and then only with the posting of a USDA-approved surety bond.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>La Merced Produce LLC will have an opportunity to request a hearing, but in the past three years, USDA resolved approximately 5,000 claims filed under PACA involving $96 million. PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. One of the penalties could be to revoke or suspend the La Merced Produce license for violating PACA.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.ams.usda.gov/AMSv1.0/" target="_new"> Agricultural Marketing Service</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
