Virginia Agricultural Products Dealer Bonds


What is a Virginia Agricultural Products Dealer Bond?

Agricultural product dealers must post surety bonds as required by the Virginia Department of Agriculture and Consumer Services. Anyone who buys, sells, solicits for sale, processes for sale or resale, resells, exchanges, negotiates, purchases or contracts for processing or transfers any agricultural product of a producer is subject to the bond requirement.

The bond amount is equal to the maximum amount of gross business the applicant generated in any month in the Commonwealth during the preceding licensing year, but in no event will the bond amount exceed $40,000. A new dealer is required to post a $40,000 bond for the first year of operation.

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Agricultural Products Dealer Bond

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Why is a Virginia Agricultural Products Dealer Bond Required?

The bond obligates the dealer to properly account for and make payment to producers, and their agents or representatives, for all agricultural products bought from or handled or sold for such producers, their agents or representatives, as required by Section 3.1­ 722.5, Code of Virginia. The surety company may cancel this bond by giving 30 days written notice, by registered mail to the Commission of Agriculture and Consumer Services.

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