USDA Lifts PACA Reparation Sanctions on Colorado Produce Businesses

USDA/AMS Press Release:

Release No.: 216-14

Contact: Nadine Wilkins, (202) 720-8998, nadine.wilkins@ams.usda.gov

WASHINGTON, Oct. 15, 2014 – The U.S. Department of Agriculture (USDA) announced Buckboard Bean Inc. and Sunset Trading LLC satisfied reparation orders issued under the Perishable Agricultural Commodities Act (PACA).

The Greeley, Colo., companies can continue operating in the produce industry upon applying for and being issued a PACA license. Tammera A. Anderson and Darin D. Anderson were listed as members of Sunset Trading LLC. Also, Darin D. Anderson was listed as the officer, director, and major stockholder of Buckboard Bean Inc. These principals 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 not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to impose sanctions on 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. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.