License & Permit
Agricultural Products Dealer Bond
An agricultural products dealer bond guarantees that a licensed dealer will pay farmers and other sellers for the crops and products it buys or handles.
- Required by
- State agriculture departments (in Florida, the Department of Agriculture and Consumer Services)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state agriculture department for the benefit of producers and dealers who sell to the licensee. If the dealer fails to pay for products, those sellers may claim on the bond. The state agriculture commissioner administers claims.
Who needs it
- Produce and crop buyers
- Commission merchants and brokers of farm products
- Packing houses buying from growers
What the underwriter looks at
- Peak-month purchase volume
- Financial statements
- Payment history with growers
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond does a Florida dealer need?
Florida section 604.20 sets the bond at twice the dollar value of products bought from Florida producers in the peak month of the past 12 months, with a $5,000 minimum. New dealers use an estimate of the coming year's peak month.
What if I cannot post the full amount?
Florida offers a one-year conditional license with at least the $5,000 minimum plus an affidavit limiting volume or a second bond to reach the full amount.