The New York Farm Products Dealer Bond is required by the New York Commissioner of Agriculture and Markets. The bond ensures that the bondholder will comply with the provisions of Article 20 of the Agriculture and Markets Law. It requires the bondholder to honestly account for all farm products received for handling or sale. In addition, it ensures producers are paid fully and promptly.
Who needs a Farm Products Dealer License?
Anyone who buys or receives New York farm products from New York State producers for resale in excess of $20,000 annually needs a New York farm dealer license. This includes:
- Commission merchants
- Net-return dealers
However, there are some exemptions to the licensing requirement, including:
- Dealers who are registered and bonded with the USDA Grain Inspection, Packers, and Stockyards Administration (GIPSA) for livestock
- Agricultural cooperative corporations when receiving, processing, and marketing farm products of its producer members
The purpose of the farm dealer licensing requirement is to ensure that New York State producers are paid fully and promptly, even if a dealer defaults in payment. The licensing process also helps to suppress and prevent unfair and fraudulent marketing practices.
To obtain a New York farm dealer license, businesses must complete an application and submit a New York Farm Products Dealer Bond. The bond amount is based on the volume of farm products that the business expects to purchase or receive annually.
How can I obtain a New York Farm Products Dealer Bond?
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- 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.