What is a Washington Agricultural Product Dealer Bond?
Get your quick guide on how to easily obtain this bond today!
Any dealer of agricultural products in the state of Washington is required to post a surety bond as stated in Chapter 20.01.210 of The Revised Code of Washington.
The surety bond is a licensure requirement that is needed to protect the agricultural product consignors within Washington.
What are the bond amounts?
|BOND AMOUNT|| |
TYPES OF AGRICULTURAL PRODUCT DEALER
|Not less than $15,000||Hay, Straw, or Seed Dealer|
|Not less than $10,000||Livestock Dealer or Dealers in produce and other agricultural products|
|Not less than $10,000||Limited Dealers or Dealer of Agricultural Products other than Livestock, Hay, Straw, or Seeds|
Hay, Straw, or Seed Dealer
- Bond amount computation: The dealer of hay, straw, or seed’s annual dollar volume net proceeds or net payment that is due to the consignor is divided by 12. The sum is then increased to the next multiple of $5,000.
- The bond amount for new dealers of hay, straw, or seed may be increased during its first year. The increase will be based on the average business volume of any three months.
- Bond amount computation: should be based on the Packers and Stockyards Act of 1921 (7 U.S.C. 181) formula.
- A $5,000 increase is added to the bond per livestock dealer’s agent who is seeking a license of his or her own.
- A livestock dealer who is also acting as a buyer for other licensed and bonded persons by the Chapter 20.01 of The Revised Code of Washington or the Packers and Stockyards Act may subtract the amount of his or her annual gross volume of purchases reported to the director to determine the bond amount needed.
Dealers of Agricultural Products Other than Livestock, Hay, Straw, or Seeds
- Bond amount computation: The dealer of hay, straw, or seed’s annual dollar volume net proceeds or net payment that is due to the consignor is divided by 52. The sum is then increased to the next multiple of $2,000.
- Bond amounts that are more than $26,000 should be increased to the next multiple of $5,000.
What are the bond conditions?
- The bond should be issued by a surety bond company that is authorized to conduct such business in Washington
- The bond should be made payable to the State of Washington
- The license applicant should comply with all the provisions of Chapter 20.01 of The Revised Code of Washington
- The bond will remain valid until canceled. In the case of cancellation, a 30-day notice is required.
How can I obtain this type of 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!
STEP 2: Underwriting
We will ask you for a couple of relevant 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!
Get started on yours today! Apply here!