Today, the Florida company is accused of the worst pesticide violations in North Carolina history. And state health officials are investigating whether pesticide exposure is to blame for three deformed babies born to Ag-Mart employees -- one with no arms and legs and another with no visible sex organs.

Last fall, the N.C. Department of Agriculture's pesticide section fined Ag-Mart $184,500, the department's largest fine ever. Inspectors say it exposed workers to a host of poisonous chemicals, some linked to birth defects and other health problems. Four months later, Ag-Mart and the state are still negotiating payment.

"It's cheaper for them to pay fines than it is for them to operate aboveboard," said Fawn Pattison, head of the N.C. Agricultural Resources Center, a nonprofit that opposes the use of toxic pesticides.

Ag-Mart declined to comment about the violations.

"Our products are safe and have always been safe, and Ag-Mart stands behind its commitment to its workers, retail customers and consumers," said Leo Bottary, a company spokesman.

Since the violations were issued, an Ag-Mart worker named in the state's report says he was fired for talking with agriculture department inspectors. The company did not respond to questions about the firing.

N.C. Agriculture Commissioner Steve Troxler, whose department oversees enforcement of pesticide laws, declined to comment about the company.

Ag-Mart sells its tiny tomatoes, which it grows in North Carolina, Florida, New Jersey and Mexico, under the brand name "Santa Sweets" at grocery chains all over the United States. Their distinctive packaging features three cheerful tomatoes named Tom, Matt and Otto.

Wal-Mart, the nation's largest grocer, pulled the tomatoes off shelves because of concerns over pesticide violations. Last week, Florida Legal Services, a federally funded advocacy group for the poor, said it was trying to negotiate a settlement for hundreds of Ag-Mart workers who say they were sprayed with pesticides in North Carolina and Florida.

History of violations

Ag-Mart faces a $111,200 fine for pesticide violations in Florida. And Ag-Mart's problems in North Carolina were not its first here.

In 2003, the state Labor Department fined the company $12,600 for failing to properly train employees using pesticides and for not giving them proper protective equipment. The company paid just over $10,000.

At the same time, labor officials found hundreds of Ag-Mart workers living in unregistered housing that didn't meet basic safety regulations. The company did not provide housing for its legion of seasonal workers, many of whom said they were in the United States illegally. It left arrangements to crew leaders, who supply labor for the company.

Labor officials said they wanted to fine Ag-Mart for the housing violations but could not. Under the law, Ag-Mart did not "own or control" the housing. Three crew leaders who arranged the housing paid more than $15,000 in fines.

"I feel strongly that they could do a better job," said Regina Luginbuhl, chief of the Labor Department's agricultural safety and health bureau, which handled the 2003 violations.

Last week Ag-Mart officials refused to say how much land the company farms in North Carolina or how many seasonal workers it uses. State officials say it has about 1,100 acres, requiring about 500 workers, in Brunswick and Pender counties.

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