Who needs an Agricultural Products Dealer Bond?
An agricultural dealer is any individual or company that engages in the purchasing, soliciting, handling or negotiation of agricultural products from their producers, or agents of their producers. Agricultural Products Dealer Surety Bonds are required in order to receive a license for the purchase and resale of agricultural products.
What is the purpose of Agricultural Products Dealer Surety Bonds?
These license and permit surety bonds are issued in order to guarantee that the producers of agricultural products, such as produce, grain, livestock and milk, receive the proper accounting of their goods and adequate payment for their products from dealers.
If the principal (agricultural products dealer) does not comply with the terms of the bond, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Which states require Agricultural Products Dealer Bonds?
Pacific Surety proudly offers bonds in the following states:
Please contact your local authority for more information about Agricultural Products Dealer Surety Bond requirements in your state.
How much does an Agricultural Products Dealer Surety Bond cost?
Pricing for Agricultural Products Dealer Surety Bonds varies by state. An underwriter will review your application and your premium will be based on the following factors:
- The state requiring the bond
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay 1%-5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 Agricultural Products Dealer Surety Bond. To find out how much your Agricultural Products Dealer Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Agricultural Products Dealer Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Agricultural Products Dealer Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase an Agricultural Products Dealer Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
ADDITIONAL RESOURCES
- California Department of Food & Agriculture
- Florida Department of Agriculture and Consumer Services
- Georgia Department of Agriculture
- Oregon Department of Agriculture
- South Carolina Department of Agriculture
- Utah Department of Agriculture
- Virginia Department of Agriculture and Consumer Services
- Washington State Department of Agriculture