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The Pennsylvania Milk Marketing Board requires a Pennsylvania  Milk Dealer Bond. This is a type of surety bond which functions as a form of protection for the Board by confirming that the bondholder, or principal, will pay all amounts due under the Milk Marketing Law, its amendments, and the regulations of the Milk Marketing Board.

The amount of the Pennsylvania Milk Dealer Bond amount is determined by the Pennsylvania Milk Marketing Board based on the applicant’s financial condition and the volume of milk they anticipate selling. However, the bond amount must be at least 75% of the highest aggregate amount owed by the milk dealer to all producers for a 40-day period during the preceding 12 months. For example, if a milk dealer had an average monthly milk purchase of $10,000, their bond amount would be $7,500. If a milk dealer had an average monthly milk purchase of $50,000, their bond amount would be $37,500.

The bond amount is required to protect milk producers from financial losses in the event that a milk dealer fails to pay them for the milk they have purchased. The bond is also required to protect the Pennsylvania Milk Marketing Board from financial losses in the event that a milk dealer fails to comply with the Milk Marketing Law.

How to Get a Pennsylvania Milk Dealer 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 application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety 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.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.

To become a milk dealer in Pennsylvania, you must meet the following requirements:

• Licensing: You must obtain a Milk Dealer License from the Pennsylvania Milk Marketing Board. This license is required for anyone who purchases or handles milk within the borders of the Commonwealth.
• Bonding: You must obtain a Milk Dealer Bond.  
• Facility Requirements: Your milk handling facility must meet all applicable sanitary and safety standards. This includes having a clean and well-maintained facility, proper equipment for handling and storing milk, and adequate pest control measures in place.
• Recordkeeping: You must maintain accurate records of all milk transactions, including the date, amount, and source of all milk purchased and sold. These records must be kept for at least three years.
• Financial Responsibility: You must be financially responsible and able to meet your obligations to milk producers. This means having the necessary cash flow to pay producers for their milk on a timely basis.
• Compliance with Laws and Regulations: You must comply with all applicable laws and regulations governing the sale of milk in Pennsylvania. This includes laws and regulations related to milk quality, labeling, pricing, and sanitation.

In addition to these general requirements, there may be specific requirements for different types of milk dealers. For example, milk dealers who sell milk to schools or other institutions may be required to meet additional sanitation and safety standards. 

If you are interested in becoming a milk dealer in Pennsylvania, you should contact the Pennsylvania Milk Marketing Board for more information. They can provide you with a detailed list of requirements and help you to understand the application process.

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