United States Department of Agriculture Issues Payments from PACA Employment Bond


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Mon. February 13th, 2023 - by Melissa De Leon Chavez

WASHINGTON, DC - Recently, the United States Department of Agriculture (USDA) distributed payments from a Perishable Agricultural Commodities Act (PACA) surety bond in the amount of $300,000 to 28 firms for reparation awards. These were issued against Rain Forest Produce, based in Los Angeles, California.

Direct From the USDA Agricultural Marketing Service:

In accordance with the PACA, a surety bond in the amount of $300,000 was posted in July 2019, on behalf of Rain Forest Produce, as a prerequisite to employ Ricardo Villalobos. Rain Forest Produce went out of business in February 2020, and the bond was retained for an additional nine months to cover the statutory period for filing complaints under the PACA. The surety bond provides for the payment, or prorated payment, of any PACA reparation awards issued during the bonding period against Rain Forest Produce that were not paid or appealed.

Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond. USDA holds the surety bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.


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

USDA Agricultural Marketing Service