The California Produce Dealers Act Surety Bond is required by the California Department of Food and Agriculture.
All applicants must comply with the following requirements, as stated by the Department of Food and Agriculture Division of Marketing Services:
The California Produce Dealers Act Surety Bond complies with the provisions of the Food and Agricultural Code, and ensures that a licensee will faithfully and honestly handle farm products and pay in full for them. This bond protects the obligee (the person or entity that requires the bond) from financial harm, deceit, misrepresentation and unlawful omissions or acts on behalf of the bond principal (the person or entity that buys the bond).
What is the bond amount?
The Department of Food and Agriculture does not maintain a prescribed amount for this bond, the department simply says the bond must be ” in a form and amount satisfactory to the director”. However, the department does qualify that the amount of the bond will be no less than $10,000 or 20% of the annual dollar volume of business based on the product value returned to the grower, whichever is greater. If the director sees fit, he or she may require the bond amount to be higher. The amount of this bond is based on a number of factors, but under no circumstances will the bond amount for the California Produce Dealers Act Surety Bond be lower than $10,000.
If you are in need of this bond, all you need to do is submit our free online application! One of our licensed agents will contact you within one business day with a firm, no-obligation quote for the premium. If you choose to move forward after hearing the quote, we will have you sign any necessary paperwork and remit the premium payment. Once the payment is processed we will ship your California Produce Dealers Act Surety Bond to you via USPS Priority Mail, with overnight shipping options also available!
The surety bonding experts at 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