Georgia agricultural products dealers have to get licensed and bonded before beginning operations,. Keep reading to find out how it works.
Who is considered an agricultural products dealer?
First, let’s define agricultural products according to the Rules and Regulation of the State of Georgia:
- Fruits
- Vegetables
- Pecans
- Cotton
That definition does not include:
- Dairy products
- Tobacco
- Eggs
- Grains
- Other basic farm crops
An agricultural products dealer, then, is anyone (individual, business entity, etc.) who buys, sells, exchanges, or otherwise deals in ag products after purchasing or receiving on consignment ag products from an agricultural products producer or their representative. The Georgia Department of Agriculture issues ag products dealers’ licenses and requires the surety bond. Here’s some of what information you’ll provide on the application:
- Business and applicant name
- Business ownership type and names of other owners
- Names of agents or buyers that represent the applicant in Georgia
- Type of agricultural products to be handled
- Surety bond
Once completed, mail the application and bond to:
Georgia Department of Agriculture
Markets Division
340 Agricultural Building
19 Martin Luther King, Jr. Dr. SW
Atlanta, GA 30334
Who else needs a surety bond?
Georgia agricultural products dealers aren’t the only professionals in the industry who need a bond. According the Department, anyone holding these licenses also need similar bonds:
- Cotton dealers and warehouses
- Grain dealers and warehouses
- Brokers/sales agents of agricultural products
- Distributors of agricultural products
- Chain stores
- Livestock/equine sales establishments
- Livestock/equine dealers
- Livestock/equine brokers/livestock sales agents
Contact the Department’s Bonding Section for more information on getting licenses and bonds for those professions.
Getting bonded
The amount of bond coverage Georgia agricultural products dealers need depends on the highest dollar value of business done in one month with producers in the state. If the dealer is new to business, they will use the highest estimated one-month dollar amount. This bond is required to guarantee the dealer’s accurate payment to any producers, agents, or representatives they do business with. Should the ag products dealer violate the terms of the bond, its coverage provides a means for any damaged parties to seek reimbursement.