The United States Department of Agriculture (USDA) took firm action against groups from five states this week for failing to make payments of more than US$200,000.

In an announcement, the department said it was imposing sanctions on six companies as they didn't pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

The largest sums were attributed to Haag Food Service Inc. (Breese, Illinois) or failing to pay an US$86,925 award in favor of an Ohio seller and Alejandro Cartagena of Cartagena Produce (McAllen, Texas) for failing to pay a US$68,250 award in favor of a Texas seller.

Other companies sanctioned included National Farm Wholesale Fruit & Vegetable Corp. (Bronx, New York) for failing to pay US$27,819, ABI Imports Inc. (Pittsgrove, New Jersey) for failing to pay US$12,218, McAllen Produce LLC (Weslaco, Texas) for an amount of US$9,601 and Nevada Farms LLC (Las Vegas, Nevada) over an amount of US$7,567.

Meanwhile, the USDA also announced it had lifted sanctions on Michigan-based Hart Produce Co. Inc.

PACA provides an administrative forum for handling disputes involving produce transactions, and the USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it.

In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than US$66 million.

USDA experts also assisted more than 7,100 callers with issues valued at approximately US$100 million.

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