Agricultural product dealer bond cost
The Washington State Department of Agriculture requires agricultural product dealers to post surety bonds to legally work within the state. The minimum bond amount for dealers in hay, straw or seed is $15,000, and the minimum bond amount for dealers in produce and other agricultural products and limited dealers is $10,000. The required amount of bond coverage is based on two factors: the type of agricultural products the applicant handles and the volume of annual business he or she conducts. Applicants should verify their required bond amount with the state prior to bonding.
Agricultural product dealer bonds in Washington are subject to underwriting consideration, so the price you’ll pay depends not only on your required bond amount but also on a review of your personal credit report. Because the required amount and price of the bond can vary so much, we recommend submitting a bond request to connect with our team of experts who will walk you through each step of the bonding process.
Why this bond
Washington agricultural product dealer surety bonds are put in place to ensure that the principal (agricultural product dealer) complies with all provisions of Chapter 20.01 of the Revised Code of Washington, including never imposing false charges for handling or services in connection with agricultural products, making fictitious sales or intentionally making false statements regarding the grade or quality of goods shipped or packed.
If the dealer fails to uphold the law and the terms of the surety bond contract, the bond protects harmed parties from financial loss up to the full penal sum of the bond.Agricultural product dealer bonds in Washington remain in full force and effect until canceled. To cancel the bond, the surety must provide written notice of termination to the principal and the Washington State Department of Agriculture via certified mail.
Cancellation becomes effective 30 days after the department receives the notice.These bonds are very similar to commission merchant surety bonds, so applicants should be sure they’re purchasing the correct surety bond type for their licensing needs.
Become an agricultural product dealer
To become a licensed agricultural product dealer in Washington, applicants must:
- indicate the type of agricultural product they wish to handle on the application form
- provide applicant and business location information
- provide information for all agents to be licensed
- pay all required licensing fees
- indicate type of business entity
- and more
If multiple licenses are being applied for, multiple bonds must be purchased.
Apply for your surety bond
Get a FREE Washington Agricultural product dealer bond Quote Today! Click here to begin