New York Milk Dealer Bond
What is a New York Milk Dealer Bond?
It is a requirement for a milk dealer license. Milk dealers include persons—including corporations and the subsidiary and affiliate of such corporations—who purchases, handles or sells milk, or bargains for the purchase or sale of milk. This includes brokers and agents.
The purpose of this surety bond is to ensure that the licensed milk dealer will promptly pay the amounts owed to the following on or before the last day of each month, or on the first 15 days of each month based upon a price or formula as determined by the New York Commissioner of Agriculture and Markets, or the date of payment as established by a federal milk marketing order:
- New York Commissioner of Agriculture and Markets
- Any Market Administrator
- Other duly appointed agent under any official order applicable to milk produced within the State of New York for milk received from New York producers during the license period
Exemptions to this bond requirement includes the following:
- Sales or other transfers of milk between cooperatives
- Milk dealer that purchases less than 100,000 lbs. of milk per month
How much does a New York Milk Dealer Bond cost?
The bond premium is different from the bond amount. Bond premium is a small percentage of the bond amount that the milk dealer must pay the surety.
Bond premiums will depend on the milk dealer’s credit score and bond amount that will be determined by the New York Commissioner of Agriculture and Markets.
As stated in Section 258-B of the Agriculture and Markets Law of the State of New York, the bond amount shall be 12 times the amount equal to the following:
- Value of milk purchased or received from producers in the 2 consecutive months during the preceding twelve months in which the dealer purchased or received the highest aggregate value of milk divided by the number of days in those two months
- Amount owed in the same two-month period to the equalization or producer settlement fund, divided by the number of days in such months
Once you have determined your bond amount, you can claim your FREE SURETY BOND QUOTE HERE!
How can I get a New York Milk Dealer Bond?
- Apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
- Prequalification includes the assessment of the following by our expert underwriter:
- Your financial strength
- Your job/business performance history
- Your credit score
- Sign an indemnity agreement. After that, the bond will be issued and send it to you!
How does a New York Milk Dealer Bond work?
A surety bond is a three-party agreement.
Principal – milk dealer
Obligee – Commissioner of Agriculture and Markets of the State of New York
Surety – Surety bond company
This bond will protect the Obligee against losses if the Principal fails to pay the amount due. If such happens, the Obligee will seek compensation for the losses incurred by filing a claim against the bond. The Surety will pay the Obligee, but the Principal must reimburse the Surety after.
Ready to apply for your surety bond? START HERE!