New York Farm Products Dealer Bond
What is a New York Farm Products Dealer Bond?
The Commissioner of Agriculture and Markets of the State of New York—in pursuance of Section 248 of the Agriculture and Markets Law—requires every farm products dealer to obtain this bond as a license requirement. This will be placed in the Agricultural Producers Security Fund.
This bond is required to guarantee the compliance of the farm products dealer to the relevant state laws as well as to the rules set forth by the New York State Department of Agriculture and Markets. That includes paying all the amounts due and honestly account for all farm products received.
As this bond’s Obligee, the New York State Department of Agriculture & Markets can file a claim against this bond if the farm products dealers fail to fulfill the obligations required.
Farm products dealer includes the following:
- Commission merchants
- Net-return dealers
Farm products dealer who intends to pay the farm products upon delivery in cash, cash equivalent, bank check, money order, electronic funds transfer, or by debit card is exempted from filing a bond. However, if the farm products dealer who has been exempted from filing a bond fails to promptly pay the producer, the Commissioner will require the farm products dealer to submit a bond no later than 10 days from the date of notification.
How much does a New York Farm Products Dealer Bond cost?
Bond cost varies per applicant. This will depend on the farm products dealer’s credit score and the bond amount. The bond amount will be provided by the Commissioner of Agriculture and Markets of the State of New York.
If you have an excellent credit score, you will be eligible for a very low bond premium or just 1% of the bond amount.
GET YOUR FREE SURETY BOND QUOTE HERE if you already know your bond amount.
How can I get a New York Farm Products Dealer Bond?
Apply for this surety bond by clicking this link. We will inform you about the important information or documents that you must submit to move to the next step of the bonding process once we’ve received your application.
During the underwriting process, our expert underwriter will assess the following:
- Your financial capability
- Your business or job performance history
- Your credit score
Our expert underwriter will check everything that you have submitted, and once that is finished, we will immediately send the bond to you!
How does a New York Farm Products Dealer Bond work?
A surety bond is a three-party agreement.
Principal – farm products dealer
Obligee – Commissioner of Agriculture and Markets of the State of New York
Surety – surety bond company
This bond is for the protection of the Obligee in case the Principal violates any of his or her obligations. If the Principal fails to do any of the bonded, the Obligee can file a bond claim. The Surety will first investigate if the claim is valid before paying the Obligee. If it, the Surety will settle the claim. The Principal must then reimburse the Surety for the payments made.
Ready to apply? START HERE!