What is a Georgia Agricultural Products Dealer Bond?
Get bonded in order to get licensed!
Georgia has an abundant variety of agricultural products all year round, and the biggest one is nuts. At more than 2 billion pounds a year, Georgia produces the most number of nuts in the United States.
Before you can join this more than $160 million per year industry, you need to get licensed. And one of the most important requirements for which is a surety bond!
In order to protect the farmers or the producers, all agricultural product dealers in Georgia are required to submit a surety bond along with their license application.
Through the surety bond, the Department of Agriculture will be assured that the agricultural product dealer will be able to financially cover any losses that might happen in case the said dealer commits a misconduct. The misconduct includes the inability to pay the producer for the agricultural products bought.
An agricultural product dealer is someone who:
- Sells, resells, exchanges, or transfers agricultural products that have been bought from producers, its agent or representative.
- Receives agricultural products from the producers on a consignment basis
- Any person who buys, sells, shells, or processes pecan nuts
The requirement is mandated by Section 2-9-5 of the Georgia Code.
What is the Agricultural Products Dealer Bond amount?
The bond amount will be a case-by-case basis and will be determined by the Commissioner of Agriculture.
$ 10,000 – minimum bond amount
$ 230,000 – maximum bond amount
$ 500,000 – maximum bond amount for dealers of pecan nuts
Once you have determined your bond amount, we can give you a tailored quote for your bond premium.
If you want to find out what you need to pay, GET YOUR FREE QUOTE HERE today!
How can I get an Agricultural Products Dealer Bond?
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
A copy of the bond form can be obtained at the Department of Agriculture.
STEP 2: Underwriting
We will ask you a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the bond conditions?
- The surety bond should be issued by a surety bond agent or company that is recognized by the State of Georgia’s Commissioner of Insurance
- The surety bond should be made payable to the Commissioner of Agriculture
- The licensed agricultural products dealer is obligated to comply with the provisions of Section 2-9 of the Georgia Code, and the rules and regulations of Georgia’s Department of Agriculture
- If the licensee commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
Ready to start on your bond? APPLY TODAY!