Farmers don’t always have the time or energy to take their products to local markets. They need a middleman: an agricultural dealer. If you are an agricultural dealer who buys products from farmers and resells these products on the market, you must get licensed and bonded. The Washington State Department of Agriculture requires agricultural product dealers to post surety bonds before they can legally work in the state.
What is a Washington Agricultural Dealer Bond?
A Washington Agricultural Product Dealer Bond is a type of surety bond that promises you will follow all state laws relating to agricultural product dealing. This bond is required of all agricultural product dealers in the state of Washington.
NOTE: This bond is very similar to the Commission Merchant Bond. A commission merchant is very different from an agricultural dealer because they buy or sell products for farmers for a percentage of the sale price. An agricultural dealer buys products from farmers and then resells them on the market.
What Does a Washington Agricultural Dealer Bond Do?
This bond promises you will abide by all state and industry regulations. This means not imposing false charges for services, not making fraudulent sales, and not making false statements regarding the grade, condition, or quality of your goods.
This bond also promises you will pay farmers once all has been said and done. This bond is not a protection for you, but for the farmers and the buying public.
How Do I Know I Need a Washington Agricultural Dealer Bond?
Getting a bond is one of the steps involved in getting your Washington Agricultural Dealer License. You cannot get a license without getting a bond. For a complete list of who needs to get licensed, view the second page of the Washington Agricultural Dealer License Application.
How Do I Determine The Amount of My Bond?
Washington has set the bond amount for hay, straw, or seed dealers at a minimum of $15,000. The minimum bond amount for dealers in produce and other agricultural products is $10,000. The bond amount for limited dealers is also a minimum of $10,000.
Though this is the minimum bond amount, your required bond amount is based on the volume of annual business you conduct. A complete list of bond amounts can be found on the second page of the Washington Agricultural Dealer Bond Form.
How Much Will I Pay For My Bond?
Agricultural Dealer Bonds are subject to underwriting, which means your credit will come into play when determining the price you’ll pay for your bond. Those with good credit can expect to pay 1-4% of their total bond amount. Those with injured credit will have to pay a higher rate, anywhere from 5-10%.
Unlike insurance, where you pay monthly, you only need to pay one time for your bond.
For more information on how bond rates are calculated, click here.
How Can I Get The Best Price For My Bond?
Getting a Washington Agricultural Product 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.
Can I Get A Bond If I Have Bad Credit?
Yes. Just because you have injured credit does not mean you can’t get bonded. Good surety bond companies will work with you, regardless of your situation. At Surety Solutions, we offer bad credit options for individuals who need to get their Washington Agricultural Product Dealer Bond. No matter what your situation, we can work with you.