By Andi Anderson
The U.S. Department of Agriculture (USDA) has issued sanctions against multiple produce businesses, including Fruit Point Produce Inc. in Chicago, Illinois, for failing to fulfill their contractual obligations under the Perishable Agricultural Commodities Act (PACA).
These businesses did not pay reparation awards and now face license suspensions and operational restrictions.
Illinois Business Among Those Sanctioned
Fruit Point Produce Inc., based in Chicago, Illinois, failed to pay a $9,100 reparation award to a Texas seller. The USDA identified Emmanuel Garcia as the company's officer, director, and major stockholder.
Other sanctioned businesses include:
Harvest Pro Inc. (Modesto, California) – Failed to pay $120,714 to a California seller.
E & R Produce LLC (McAllen, Texas) – Failed to pay $7,491 to a Missouri seller.
PACA and USDA Enforcement
The PACA program ensures fair trade practices in the fresh and frozen produce industry. When a business fails to meet payment obligations, the USDA issues reparation orders. If payments remain unpaid, the USDA imposes sanctions, including:
- License suspensions
- Business restrictions on responsible individuals
- Employment bans for those affiliated with PACA violations
- Protecting the Produce Industry
By enforcing PACA regulations, the USDA safeguards sellers and buyers in the agricultural market. Businesses with unpaid reparation orders are barred from operating in PACA-licensed activities until payments are made.
For Illinois farmers and businesses, this action reinforces the importance of honoring contracts and maintaining ethical business practices in the agricultural sector.
Photo Credit: usda
Categories: Illinois, Government & Policy