USDA Files Action Against Spiech Farms LLC in Michigan for Alleged PACA Violations
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint under the Perishable Agricultural Commodities Act (PACA) against Spiech Farms LLC.
According to a press release, the company, operating from Michigan, allegedly failed to make payment to 38 produce sellers in the amount of $1,153,442 from July 2017 through November 2017.
Spiech Farms LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA approved surety bond.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,400 PACA claims involving more than $58 million. PACA staff also assisted more than 8,500 callers with issues valued at approximately $151 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.