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Agricultural Products Dealer Bond

What is an agricultural products dealer? It's someone who produces and/or sells common agricultural products like grain, milk, produce, or livestock. It could also be someone who sells farm equipment, fertilizer, or anything else used in agriculture. These professionals play an important but overlooked role in keeping meat, fruit, dairy, and vegetables on everyone's dinner table. However, agricultural products are also sensitive and sometimes dangerous goods subject to various rules and regulations. Agricultural products dealer surety bonds are a way to enforce those rules. They are also a requirement for many dealers to get a state license. This page explains everything important to know.

How Does an Agricultural Product Dealer Bond Work?

It works by making the agricultural product dealer liable for any illegal activity that results in financial losses for an individual or damage to the public at large. Like all other surety bond types, agricultural product dealer bonds also work to guarantee compensation for anyone who suffers losses because of an unscrupulous agricultural products dealer.

When someone feels entitled to compensation, they may file a claim against the agricultural products dealer surety bond. The surety (the company that underwrites the bond) will then investigate the claim to determine its merit and whether it deserves a settlement. When it does, the agriculture product dealer must pay the claim – a legal requirement of a surety bond.

If the dealer does not pay for any reason, the surety will pay an automatic settlement up to the bond's coverage limit. This ensures that victims receive the compensation they deserve, but it does not relieve the dealer of his or her financial responsibility for all valid claims. The surety will expect prompt repayment with interest and fees added to the debt. In addition, failure to repay results in loss of the bond coverage that livestock dealers need to maintain their license. It can also lead to a lawsuit.

Who Needs an Agricultural Products Dealers Bond?

Only the following states require you to have this kind of surety bond:

  • California
  • Florida
  • Georgia
  • Oregon
  • South Carolina
  • Utah
  • Virginia
  • Washington

The rules for which dealers need a bond and in what amount vary widely across these states. For the most up to date rules and surety bond requirements, contact the state agency that licenses and regulates agricultural products dealers.

How Much Does an Agricultural Products Dealer Bond Cost?

The cost of a surety bond, or premium, depends on the amount of coverage the bond offers and the credit standing of the bond seeker. Bond companies calculate premiums on an individual basis, meaning that two people will often pay different premiums for the same surety bond.

Bond costs start as a small percentage of the coverage amount. This cost goes up or down, depending on the bond seeker's credit score and financial history. People with excellent credit may pay just 1% or 2% of the coverage total, but people with bad credit may pay multiple more than that – or even be denied a bond at any price. Viking Bond Service offers a special program to help people overcome their credit issues when trying to get surety bonds.

How to Get an Agricultural Products Dealer Bond

The application process involves just a few steps. In as little as 24 hours after applying, you can receive a quote for the premium price. The last step is paying the premium to activate the bond, and the coverage remains active for a specific term, usually 12 months. To apply, prepare to:

  • Complete a bond application
  • Submit to a credit check
  • Supply additional documents about your business or background (only when necessary)

Viking Bond Service for Agricultural Products Dealer Bonds

Viking Bond Service helps agricultural products dealers get the surety bonds they need in all the states that require them. Plus, we make the bonding process quick to complete, easy to understand, and affordable for all. Request a quote at any time – it has no cost and comes with no strings attached. Our team is also here to answer questions and explain anything, so please contact us or call 1-888-2-SURETY (1-888-278-7389).

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