Agricultural products dealer bond cost
The Florida Department of Agriculture and Consumer Services requires agricultural products dealers to post surety bonds in varying amounts. The required bond amount must be twice the dollar value of business done in Florida during the month in which the highest volume of agricultural products were bought or handled. The bond amount must be between $5,000 and $100,000.
These bonds are subject to underwriting, which means that the price an applicant pays for the bond is determined by the required bond amount and a review of his or her personal credit report. Our surety experts will tell you exactly how much you’ll pay for your bond when you complete a bond request today!
Why this bond?
By posting a Florida agricultural products dealer surety bond, principals (agricultural products dealers) pledge to never impose false charges for services in connection with agricultural products, make fraudulent sales or intentionally make false statements regarding the grade, conditions, markings or quality of goods. This particular bond also ensures that principals make all necessary payments to the producers they obtain their products from.
If the principal fails to follow the rules of the bond contract, state and industry and consumers are harmed as a result, the surety will reimburse the harmed parties for any damages up to the full bond amount. The agricultural products dealer, in turn, must repay the surety for all damages paid out.
Agricultural products dealer bond details
Florida agricultural products dealer bonds run continuously in full force and effect as long as the applicant remains compliant with all rules and regulations stated in the bond contract. The applicant must specify on the form if he or she is applying for the bond as an individual, partnership, corporation or LLC.
Become an agricultural products dealer
It’s against the law to act as an agricultural products dealer in Florida without first obtaining a license issued by the the Commissioner of the Florida Department of Agriculture and Consumer Services. To become a licensed dealer, applicants must file a completed license application with the commissioner, post a surety bond and pay all filing fees. Applicants should be sure to specify the types of agricultural products they intend to handle on the license application form.
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