The U.S. Department of Agriculture rejected appeals and took final action to bar the California fruit and nut cooperative Sun-Diamond Growers from federal food contracts for three years. Sun-Diamond's disqualification follows the cooperative's conviction in September of making illegal gifts to former Agriculture Secretary Mike Espy. The announcement affects only the parent cooperative, not its five affiliates. On Dec. 13, the USDA proposed debarring the affiliates. Their appeals are pending.