New Jersey Agriculture License Bond Guide
If you’re applying for a produce commission merchant license in New Jersey, you’ll likely need this surety bond.
Bond Overview
- Purpose: To ensure farmers and producers receive payment from merchants
- Who Needs It: Produce commission merchants in New Jersey
- Regulating Body: The State Secretary of Agriculture
- Required Coverage: $1,000–$100,000
- Premium Rate: 1–10%, credit-based
Learn all about the bond requirements and process in this guide.
What Is a New Jersey Agriculture License Bond?
A New Jersey agriculture license bond is a form of financial security required to get a produce commission merchant license. It ensures merchants that purchase on credit will pay sellers and also holds them liable for any fines and penalties.
Your bond amount must equal the estimated maximum monthly value of products received or purchased in the previous 12 months with a $150,000 cap.
How Much Do Agriculture License Bonds Cost?
New Jersey agriculture license bonds cost a small percentage of the required coverage amount, typically 1–10%.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs an Agriculture License Bond?
The State Secretary of Agriculture requires this bond as financial security for produce commission merchants in New Jersey.
Alternatively, you can submit an irrevocable letter of credit, certificate of deposit or U.S. government bond for the same amount.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a New Jersey agriculture license bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the state as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a New Jersey Agriculture License Bond Work?
An agriculture license bond creates a legal contract between these three parties:
- Principal: You, the produce commission merchant filing the bond
- Obligee: The State Secretary of Agriculture requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Article 2, Chapter 11, Title 4 of Revised Statutes of New Jersey.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your agriculture license bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
