California Handler of Farm Products Produce Dealers Act Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Businesses that buy, sell, negotiate, process, or otherwise handle farm products in California must be licensed under the Produce Dealers Act. Required by the California Department of Food and Agriculture (CDFA), the California handler of farm products Produce Dealers Act bond guarantees payment to producers and ensures compliance with state agricultural commerce laws.
Cost of a California Handler of Farm Products Produce Dealers Act Bond
The premium of a California handler of farm products Produce Dealers Act bond is a small percentage of the total required bond amount. The CDFA sets the bond amount while the premium depends on the annual dollar volume of farm product transactions.
Why You Need a California Produce Dealers Act Bond
A California handler of farm products bond ensures that licensed handlers pay producers according to agreed terms, honor contracts and purchase agreements, and maintain accurate financial records. The license and permit surety bond involves three parties:
- Principal: Produce dealer or handler
- Obligee: California Department of Food and Agriculture
- Surety: Bonding company
If a grower or producer suffers financial loss due to nonpayment or violations of the Produce Dealers Act, they may file a claim against the bond. The surety investigates the claim and, if valid, compensates the harmed party up to the bond amount. The bonded business must then reimburse the surety for any claims paid.
Apply for Your California Handler of Farm Products Produce Dealers Act Bond
Protect your business and maintain compliance with the California handler of farm products Produce Dealers Act bond. NNA Surety makes the bonding process quick and easy. Complete this form, submit your payment information, and receive your bond within the same day. Secure your surety bond today.