USDA Lifts PACA Reparation Sanctions on Tennessee Produce Business
- by Anne Allen
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Spring Creek Produce LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA). This is an update to Press Release No: 074-019 issued on June 26, 2019.
Direct from the USDA Agricultural Marketing Service:
Subsequent to the notification of the imposition of sanctions on June 26, 2019, USDA learned that the Greenfield, Tennessee, company had met its obligations. Spring Creek Produce LLC is now free to operate in the produce industry. Bobby Callins, Steven Willis, Jr., Phil Gordon, and Chris Gordon Davis are listed as members of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions. This may result in a reparation order being issued that requires damages to be paid by those that are not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license of a 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.
The PACA Division, which is part of USDA’s Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. Our PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For further information, contacts, and to read the press release in its entirety, please check out the link here.