Agricultural product dealer bond cost
The Georgia Commissioner of Agriculture requires agricultural products dealers to post surety bonds to legally work within the state. The required bond amount is based on two factors: the type of agricultural products the applicant handles and the volume of annual business he or she conducts.
Why this bond
Agricultural products dealers bonds in Georgia are put in place to ensure that principals (dealers) accurately account for and make payments to producers, their agents or representatives for all agricultural products bought from, handled by or sold by the producers as required by Georgia Laws, 1956, p. 617.
If the principal fails to comply with these terms and conduct all business lawfully and ethically, the bond protects harmed parties from financial loss up to the full bond amount.
Agricultural product dealer bond details
The following professionals must post an agricultural products dealer surety bond in Georgia:
- Cotton dealers
- Cotton warehouses
- Grain warehouses
- Grain dealers
- Dealers in agricultural products
- Brokers/sales agents of agricultural products
- Distributors of agricultural products
- Chain stores
- Livestock/equine sales establishments
- Livestock/equine dealers
- Livestock/equine brokers
- Livestock sales agents
These bonds remain in full force and effect until canceled. The surety can cancel the bond at any time by giving written notice of cancellation via registered mail to the Commissioner of Agriculture at least 90 days prior to the effective date of cancellation.
Become an agricultural products dealer
Prospective agricultural product dealers in Georgia must obtain a license issued by the the Commissioner of Agriculture. Georgia law requires dealers in agricultural products who buy, sell, receive, exchange, negotiate or solicit the sale, exchange or transfer of any agricultural products purchased from the producer or his agent or representative, or received on consignment from the producer or his agent or representative, or handled on a net return basis from the producer, to deliver to the Commissioner a surety bond executed by a surety corporation authorized to transact business in this state and obtain a license as a Dealer in Agricultural Products.
The applicant must specify the types of agricultural products he or she intends to handle on the application form.
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