Agriculture Bond

Name: SP Bonds
Address: 22647 VENTURA BL #349, Woodland Hills, CA, 91364, US
Telephone: 818-715-7133
Price range: $$

License, Permit & Miscellaneous Guarantee Bonds

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Agricultural Bond

AGRICULTUE BOND OVERVIEW:

Agricultural packers, market agencies, and dealers need to obtain agricultural bonds in order to comply with the U.S. Department of Agriculture’s requirements, as well as with state regulations. Agricultural bonds have also been known as agricultural packers and stockyards bonds.

This type of surety bond acts as a safety net for the federal government and the state you operate in. It guarantees that agricultural businesses will abide by the rules set forth in the Packers and Stockyards Act, and will account properly for sales of agricultural products and livestock.

Like other surety bonds, agricultural bonds function like a three-party contract. Your agricultural business is the principal that needs to obtain the bond. The federal or state authority requiring the bond is the obligee. The surety is the entity which provides the bond.

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Low Rates Based on Credit

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Usually Issued Regardless of Credit

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Bond Usually Available Regardless of Credit

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Application: Call underwriter for appropriate application at 1-818-715-7133

Agricultural Bonds FAQ

We want you to feel comfortable working with our surety bond company and realize you may still have questions. Our FAQ section below will help you understand more about our business and what we do. Let’s learn more!

What Are Agricultural Bonds?

There is a U.S. Department of Agriculture and State Regulations requirement for this type of bond. Agriculture bonds have a similar kind of structure to other surety bonds that you may be familiar with. In essence, the idea is to guarantee a level of protection to any applicable regulatory agency that a business is going to consistently align with provisions outlined by the Packers and Stockyards Act.

Agricultural surety bonds are required where the sale of livestock and products may take place.

How Much Does an Agricultural Dealer Bond Cost?

There are a few elements that go into what you will be expected to pay for a packers and stockyards bond. One of the most important pieces of the puzzle is what the federal or state agency where you operate requires.

Other elements such as your personal credit score and the financial position of the business will also feed into the agricultural bond cost that you will need to pay.
Fill out our easy quote request form today to learn what your agricultural surety bond will cost in no time at all!

How Do Agriculture Bonds Work?

This kind of bond coverage is a contract between a few essential parties. There is the principal, which is the agriculture business required to hold the bond. Next is the obligee, which is whatever federal or state agency that requires the bond to be in place. Finally, there is the surety company, which is responsible for providing the bond.

If there is such a bond required and the business refuses to comply with state or federal laws during the sale of livestock or agricultural products, there may be a claim made against the bond, which is paid by the surety, provided it’s legitimate. The bondholder will then need to make a repayment based on the penal sum.

How Do I Get an Agricultural Products Dealer Bond?

S Philips Surety & Insurance Services Inc. makes it incredibly easy to get your bond needs covered. Fill out our quick quote request form to get an idea of your bond amount, after which we will take care of all your queries and concerns as you navigate our straightforward process.

Will My Bad Credit Interfere with My Ability to Secure an Agricultural Bond?

While your state of credit can come into play in determining what the bond will cost, we will typically issue one regardless of what yours looks like.

What Kinds of Businesses Need Packers and Stockyards Bonds?

Different types of businesses will need to get one of these bonds to operate freely. A market agency, dealer, or packer, for example, may need to secure one because of the U.S. Department of Agriculture mandate.

Some states also have agency requirements that will be met by getting such a bond.

How Do Packers and Stockyard Bond Claims Work?

As indicated before, the bond works in the interest of the agency that requires it. Should you break your obligation, then a claim will be made, meaning the surety has the financial responsibility to compensate whichever party is affected. The penal sum of the bond dictates the maximum claim.

Your business must then repay this amount in full, which can be financially damaging to your business. This is why it’s in your best interest to operate within compliance with state or federal requirements.

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