A Florida Agriculture Dealer Bond is a mandatory financial guarantee required by the Florida Department of Agriculture and Consumer Services (FDACS) for any business that purchases, receives, or solicits agricultural products from Florida producers for resale. Governed by Florida Statutes 604.15–604.34, this surety bond serves as a safety net for farmers and growers, ensuring they are paid for their crops. If a licensed dealer fails to pay for a shipment or goes bankrupt, the producer can file a claim against the bond to recover their losses. The required bond amount is calculated based on the dealer's volume specifically, twice the dollar amount of business done in their highest month -with a minimum requirement of $5,000 and a statutory maximum of $100,000.

The cost of a Florida Agriculture Dealer Bond is not a flat fee but a premium calculated as a percentage of your total bond amount. While the state requires a coverage limit between $5,000 and $100,000 - calculated as twice the dollar value of your highest month of sales - you typically pay only 1% to 3% of that total if you have good credit. For example, a dealer requiring a standard $25,000 bond with excellent credit might pay just $250 to $750 per year. However, premiums can range higher (up to 10%) for applicants with lower credit scores. Ultimately, the price is determined by the surety company based on your financial strength, but it is always a fraction of the total coverage required for your FDACS license.

A Florida Agriculture Dealer Bond functions as a binding legal agreement between three parties: the dealer (Principal), the FDACS (Obligee), and the surety company. Unlike standard business insurance, this bond is a financial safety net designed specifically for farmers and producers. If a dealer fails to pay for a shipment of agricultural products or commits fraud, the unpaid producer can file a formal complaint with the FDACS. If the state's investigation confirms the debt, the surety company will pay the claim up to the bond's full value to compensate the farmer. Crucially, the dealer remains fully liable under the bond's indemnity agreement and must reimburse the surety for every dollar paid out, plus legal fees.

A Florida Agriculture Dealer Bond is required for any individual or business that purchases, receives, handles, or solicits agricultural products directly from a Florida producer for the purpose of resale. Governed by Florida Statute 604.15, this requirement applies to dealers, brokers, and agents who transact more than $1,000 worth of productsannually and do not pay with cash or immediate currency (like a wire transfer) at the time of delivery. This specifically includes buyers of:

Fruits and vegetables (citrus, row crops, etc.)
Livestock (cattle, poultry, milk products)
Horticulture products (sod, nursery stock, tropical foliage)
Hay and grain
Note: Farmers selling their own crops and dealers who operate exclusively on a cash-on-delivery basis are generally exempt from this bond requirement.

Complete the application below, or email [email protected] to renew your Farm Labor bond.