What is an Agricultural Dealer Surety Bond?
An Agricultural Dealer Surety Bond seeks to regulate dealers of agricultural products. This bond ensures that producers of agricultural products receive proper accounting and payment for the products they provide. It provides a financial backstop in case a dealer is unable to pay its suppliers.
Who needs an Agricultural Dealer Surety Bond?
Agricultural dealer bonds are most often needed by companies or farms in Florida. The State of Florida requires dealers to be bonded in order to protect the suppliers of ag products. In many cases, the suppliers of these products provide them to dealers on credit. Little if any cash is required up front. The dealers of these products are most often offered discounts based on how quickly they pay the supplier or grower. Please visit our FL Ag Dealer Bond page to learn more about the bond requirement in Florida.
What is the current market for a Agricultural Dealer Surety Bond?
Agricultural Dealer Surety Bonds are widely written by multiple surety bond markets. The respective minimum and maximum bond amounts for the Florida Agricultural Dealer Surety Bond are $5,000 and $100,000. However, these minimum and maximum amounts vary by state and may differ. These bonds can be approved based on the owner’s personal credit up to $50,000. Personal or corporate financial statements are often required with the bond amount exceeds $50,000.
Do you write bad credit Ag Dealer Surety Bonds?
Yes, you can obtain a surety bond even with bad credit. The premium amount charged by the surety company will increase as the applicant’s personal credit score decreases. Applicants with bad credit can expect their ag dealer bond cost to range from 4%-10% of the bond amount needed. The best way to determine your surety bond cost is to complete the application listed below.
How do I apply for an Agricultural Dealer Surety Bond?
- Complete our online Agricultural Dealer Surety Bond application, or
- Download and complete our printable Agricultural Dealer Surety Bond application, and
- Receive your surety bond quote in minutes!