Texas Firm Posts $100,000 Employment Bond

USDA/AMS Press Release:

WASHINGTON, Nov. 12, 2015 – Under regulations of the Perishable Agricultural Commodities Act (PACA), RJ Produce Inc., operating in Pharr, Texas, posted a $100,000 surety bond.

The surety bond was posted with the U.S. Department of Agriculture (USDA) to employ Jose Cardenas, previously named in a PACA action.

Jose Cardenas was the president, secretary, treasurer and a stockholder of Unique Produce Corp., Riverside, Calif., a company which failed to pay reparation awards issued against it under the PACA.

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 will hold the $100,000 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.

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. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Contact Info: Nadine Wilkins, nadine.wilkins@ams.usda.gov, 202-720-1103

Release No.: 139-15