Commission merchant bond cost
The Washington Department of Agriculture requires commission merchants to post surety bonds to legally work within the state. The required bond amount is determined based on the merchant’s annual dollar volume and the type of agriculture being handled. Bonds for dealers in hay, straw or seed have a minimum coverage amount of $15,000. Bonds for dealers in produce and other agricultural products have a minimum coverage amount of $10,000.
These bonds are subject to underwriting, so the price you’ll pay for your bond depends on a review of your personal credit report, as well as on your required bond amount.
Why this bond
Washington commission merchant bonds ensure that principals (commission merchants) comply with all provisions of Chapter 20.01 RCW while on the job. Obligations under this bond include:
- remitting payment for consignments within 30 days of selling agricultural products on the grower’s account
providing the producer with an endorsed and fully-completed manifesto of cargo for each load of hay or straw
obtaining a certified net and gross weight from the first certified public scale nearest the producer and furnish the producer a copy of the certified weight ticket within 72 hours of taking possession of the cargo
- Additionally, Washington commission merchants are prohibited from imposing false charges for handling or services in connection with agricultural products, making fictitious sales or intentionally making false statements about the grade or quantity of goods shipped or packaged.
- If the commission merchant fails to comply with these terms, a claim can be filed against the bond. The bond protects harmed parties from financial loss up to the full bond amount.
Commission merchant bond details
Commission merchant surety bonds in Washington are continuous until canceled. The surety can cancel the bond by giving written notice of termination to the principal and the Washington State Department of Agriculture by certified mail. Cancellation becomes effective 30 days after the notice is received by the department.
These bonds are very similar to agricultural product dealer surety bonds, so applicants should be sure they’re purchasing the correct surety bond type for their licensing needs.
Apply for your surety bond
Get a FREE Washington Commission Merchant Bond Quote Today! Click here to begin