A Georgia Dealer in Agricultural Products Bond Georgia Dealer in Agricultural Products Bond is a type of surety bond Required by the Georgia Department of Agriculture (GDA) for businesses that buy and sell agricultural products within the state. The bond amount varies and is set by the GDA.  The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Georgia Dealer in Agricultural Products Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Georgia Dealer in Agricultural Products Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license. 

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How is the Bond Amount Determined?

The amount of a Georgia Dealer in Agricultural Products Bond is determined by a combination of factors, with some limitations set by the state. Here’s a breakdown:

  • Estimated Highest Monthly Volume: The core factor is the estimated highest monthly volume of agricultural products you expect to handle (buy or sell) in a month. This could be based on past records (if you’re an existing business) or projections (for new businesses).
  • Minimum and Maximum Limits: The state sets a minimum and maximum amount for the bond. Currently, the minimum is $10,000 and the maximum is $230,000 (except for pecan dealers, which can be up to $500,000).
  • Commissioner’s Discretion: The Georgia Commissioner of Agriculture has some discretion in determining the final bond amount. They might consider factors like your business history, type of products handled, and potential risks involved.

Here’s a simplified example:

  • If you’re a new business dealing with vegetables and estimate your highest monthly volume to be $50,000, the bond amount would likely be set at $50,000 (within the allowed range).
  • However, if you’re a pecan dealer with a projected peak month of $350,000, your bond might be set closer to the maximum allowed for that category ($500,000).

Here are some resources for further details:

Rules of the Georgia Department of Agriculture: https://agr.georgia.gov/licenses-and-bonding-warehouses-and-dealers-ag-products (Subject 40-30-3 BONDING)

Who Needs this Surety Bond?

A Georgia Dealer in Agricultural Products Bond is required for any business involved in buying, handling, or selling agricultural products within the state, with a few exceptions. Here’s a breakdown of who typically needs this bond:

  • General Agricultural Product Dealers: This includes businesses that purchase agricultural products directly from producers or their agents, for resale or further processing. Examples include produce stands, grain elevators, cotton gins, and livestock brokers.
  • Commission Merchants & Brokers: These businesses act as intermediaries, connecting producers with buyers. They need the bond to ensure they handle the financial transactions ethically.
  • Distributors and Chain Stores: If they directly purchase agricultural products from Georgia producers, they might need the bond.

Here are some exemptions to the bond requirement:

  • Retailers: Businesses that solely sell agricultural products directly to consumers (think grocery stores) are generally exempt, unless they buy directly from producers.
  • PACA-Licensed Dealers: If a business already has a Perishable Agricultural Commodities Act (PACA) license from the USDA for fruits and vegetables, they might not need a separate Georgia bond, although it depends on the specific situation.
  • Small-Scale Operations: Holders of food sales establishment licenses with less than ten employees and who don’t conduct wholesale business might be exempt.

For a definitive answer on whether you need a bond, it’s best to consult with the Georgia Department of Agriculture. They can clarify the requirements based on the specific products you handle and your business operations. Here’s the link to their licensing and bonding information for warehouses and agricultural product dealers: https://agr.georgia.gov/licensing

How to Obtain a Dealer in Agricultural Products License

  1. Apply Online for Your License 
  2. The GDA will review it and then contact you about next steps and provide the bond amount needed.
  3. Obtain your surety bond.
  4. Once your full license package has been completed and approved, you will be notified by email how to log in and pay your license fee.
  5. When you pay your fee, you will receive an emailed copy of your license.

Respond promptly to any questions or notifications, and make sure GDA can contact you if needed!

Here are some helpful resources:

Additional Tips:

  • Contact the GDA Licensing Team (GDALicensing@agr.georgia.gov or 855-4-AG-LICENSE) if you have any questions or require clarification on specific requirements.
  • Ensure you have all the necessary documents in order to avoid delays in processing.
  • Apply well in advance, especially if your business relies on obtaining the license for specific operations.

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.


How to Get Your Georgia Dealer in Agricultural Products Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
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2. Get Your Free Quote
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3. Get Your Bond
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