The California Milk Handler Surety Bond is required by sections 62181 – 62202 of the California Food and Agricultural Code. To get a free, no-obligation quote for this bond, apply here!
The State of California defines a milk handler as “Every person who purchases, handles, or receives bulk unprocessed or pasteurized manufacturing or market milk for the purpose of manufacture, processing, sale, or other handling.”
Every milk handler in the state is required to have a license from the Commissioner of the Department of Food and Agriculture in order to do business. After receiving this license, milk handlers must obtain a California Milk Handler Surety Bond. This bond must be on file with the Commissioner before licensees can purchase milk in bulk from producers.
You can find more information, including the license application, on the CA Dept. of Food and Agriculture website.
The California Milk Handler Surety Bond guarantees timely payment for the milk supplied by the farmers and dairies. If the milk handler fails to pay, a claim can be made on their bond, which the surety company (the company that issued the bond) will pay out. Unlike insurance, the milk handler must then pay back the surety company for any claims.
The bond amount is managed by the Department of Food and Agriculture. The bond amount will correlate with and depend on the amount of milk purchased on an annual basis.
When the daily average purchase of milk from producers is
If a milk handler is found in violation of California’s milk marketing laws, the state may require the handler to get an additional bond or a new bond altogether. If the handler is forced to get a new bond, that new bond will be in a higher amount than the previous one.
To obtain a California Milk Handler Surety, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bonding experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau