Farm to table refers to the stages of production of food: harvesting, storage, processing, packaging, sales, and consumption. If you are an agricultural product dealer who buys products from farmers and resells it on the market to restaurants or stores, you must be licensed and bonded.
The Florida Department of Agriculture and Consumer Services requires all Florida agricultural dealers to get a Florida Agricultural Products Dealer Bond.
What is a Florida Agricultural Products Dealer Bond?
A Florida Agricultural Products Dealer Bond is a type of surety bond that promises you will abide by Florida state laws relating to agricultural product dealing. This bond is required of all agricultural product dealers in the state of Florida.
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What Does a Florida Agricultural Bond Do?
A FL Agricultural Products Dealer Bond promises you will abide by industry regulations. This includes:
- Not imposing false charges for services
- Not making fraudulent sales
- Not making false statements regarding the grade, condition, or quality of your goods
A Florida Agricultural Products Dealer Bond also promises you will make all the necessary payments to the farmers you obtain your products from.
Should you not follow state rules and regulations, state and industry consumers are protected by the bond. This bond is not a protection for you, but for the farmers and the buying public.
Why Do I Need A Florida Agricultural Bond?
Getting a bond is one of the steps you need to get your Florida Agricultural Dealer License. You cannot get a license without getting a bond.
How Do I Determine My Bond Amount?
Florida has set the required bond amount at twice the dollar value of business done during the month in which the highest volume of agricultural products were bought or handled by you as a dealer.
For example, if you did the most business in the month of July, totaling $10,000 then your bond amount will need to be for $20,000.
Your bond amount must be between $5,000 and $100,000.
If you are a new business that is just starting its operation in Florida, estimate the dollar amount of business during your busiest month to determine your bond amount.
How Much Will My Bond Cost?
The price you’ll pay for your bond depends on two main factors: the total amount of your bond and your financial strength as shown in your credit score. Learn more about how your credit influences your surety bond cost.
The total amount of your bond is a huge determining factor. A $10,000 bond will always cost less than a $50,000 bond for obvious reasons.
You will not need to pay the total bond amount. This is where your personal credit score comes into play. The price you’ll pay for your bond is dependent on your personal credit score. Those with good credit might only have to pay 1-3% of the total bond amount. Those with injured credit will have to pay a higher rate.
Getting an Agricultural Products Dealer Bond can be expensive, but it doesn’t have to be. At Surety Solutions, our online Bond Cost Calculator lets you view quotes for your bond so you can compare prices before you buy. We are licensed in all 50 states and have relationships with over 30 of the top insurance carriers in the nation. This means we not only can get you bonded but at the best price. Your free quotes are just a click away.