What is a Florida Agricultural Dealer Surety Bond?
A Florida Agricultural Dealer Bond is one way the State of Florida regulates dealers of agricultural products. The Florida Agricultural Dealer Surety Bond ensures that producers of agricultural products receive proper accounting and payment for the products they provide. Unless an exemption exists (please refer to the Florida Department of Agriculture and Consumer Services), all entities who buy, sell, receive, solicit, handle, or negotiate agricultural products within the State of Florida from or for Florida producers, must provide a Florida Agricultural Dealer Bond and be appropriately licensed by the State of Florida.
How much does a Florida Agricultural Dealer Bond cost?
The cost of your surety bond will depend upon your personal credit score. Applicants with excellent credit can expect a rate of 1-2% of the bond amount needed. Applicants with bad credit can expect a higher rate. The rates are higher for applicants with bad credit because ag dealer bonds are payment based obligations. Credit scores are based on an individual’s payment history which is why the surety company will charge a higher premium.
What is the current market for a Florida Agricultural Dealer Bond?
Florida Agricultural Dealer Surety Bonds are available from numerous surety companies. Some surety companies will underwrite these bonds based only on the applicant’s personal credit score. Other surety companies may require a personal or business financial statement in addition to reviewing the owner’s personal credit scores.
What Florida Agricultural Surety Bond amount do I need?
The bond amount is determined by multiplying your company’s highest month of sales by 2. For example: Let’s assume your highest month of ag product sales is February and the gross sales amount was $30,000. The bond amount needed for the following year would be $60,000. If your business is new, the bond amount required would be highest estimated monthly sales amount multiplied by 2. Regardless, the bond amount cannot be less than $5,000 or greater than $100,000.
How do I apply for a Florida Agricultural Dealer Bond?
- Complete our online Florida Agricultural Dealer Bond application, or
- Download and complete our printable Florida Agricultural Dealer Bond application, and
- Receive your surety bond quote in minutes!