Agriculture Dealer Bonds
Florida Department of Agriculture and Consumer Services requires each licensed Agriculture Dealer to provide evidence of bonding which shall not be less than $5,000 but not more than $100,000 in order to receive and maintain their license. The required amount of the surety bond will be equal to twice the amount of the business transacted during the month in which the maximum volume of agricultural products were bought or handled by the dealer in any manner. Agricultural product dealers that pay for products in any manner other than cash, are required to maintain this bond. The State of Florida Agricultural Dealer Bond renews on an annual basis.
Agriculture Product Dealer surety bonds are underwritten and approved based upon the owner of the company’s personal credit score. Most of our surety companies/carriers utilize a “soft pull” therefore it typically will not affect your personal credit score.
Business owners with a personal credit score over 680, typically pay in the 1% range annually. If your personal credit score is low, we can still get you bonded at a great price. We are licensed with over 60 surety companies allowing us to offer the most competitive premiums!
We are Agriculture Product Dealer Bond experts and we can make sure you are in compliance with your state required bonding, in most cases, the same day.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected]
Why You Need a Florida Agriculture Dealer Bond
You need a Florida Agriculture Dealer Bond primarily because it is a mandatory requirement for obtaining an Agricultural Products Dealer License from the Florida Department of Agriculture and Consumer Services (FDACS). If your business purchases, handles, or solicits agricultural products from Florida producers for resale – specifically if you transact more than $1,000 annually – state law (Statutes 604.15–604.34) requires this surety bond to operate legally. Its core purpose is to protect farmers and producers against non-payment; if a dealer fails to pay for a shipment or commits fraud, the injured party can file a claim against the bond to recover their financial losses. Operating without this bond exposes your business to license denial, hefty administrative fines, and a complete shutdown of your ability to trade agricultural goods in the state.
Agriculture Dealer Bond FAQs
These are some of the most common questions asked about Agriculture Dealer Bonds and how they work.
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.