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Washington Commission Merchant Bond

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How much does a commission merchant bond cost in Washington?

The Washington Department of Agriculture requires commission merchants to post surety bonds to work legally within the state. The required bond amount is determined based on the merchant’s annual dollar volume and the type of agriculture being handled. Bonds for dealers in hay, straw, or seed have a minimum coverage amount of $150,000. Bonds for dealers in produce and other agricultural products have a minimum coverage amount of $10,000.

These bonds are subject to underwriting, so the price you’ll pay for your bond depends on a review of your personal credit report, as well as on your required bond amount. The best way to find out exactly how much you’ll pay is to request a free bond quote now!

Bond Type
$10,000-$145,000Agriculture Commission Merchant BondCommission Merchants in Produce and Other Agricultural Products
$150,000-$220,000Agriculture Commission Merchant BondCommission Merchants in Hay, Straw, or Seed

Why do I need this bond?

Washington commission merchant bonds ensure that principals (commission merchants) comply with all provisions of Chapter 20.01 RCW while on the job. Obligations under this bond include the following:

  • Remitting payment for consignments within 30 days of selling agricultural products on the grower’s account
  • Providing the producer with an endorsed and fully completed manifesto of cargo for each load of hay or straw
  • Obtaining a certified net and gross weight from the first certified public scale nearest the producer and furnish the producer a copy of the certified weight ticket within 72 hours of taking possession of the cargo

Additionally, Washington commission merchants are prohibited from imposing false charges for handling or services in connection with agricultural products, making fictitious sales, or intentionally making false statements about the grade or quantity of goods shipped or packaged.

If the commission merchant fails to comply with these terms, a claim can be filed against the bond. The bond protects harmed parties from financial loss up to the full bond amount.

Request a free bond quote now!

What’s the fine print?

Commission merchant surety bonds in Washington are continuous until canceled. The surety can cancel the bond by giving written notice of termination to the principal and the Washington State Department of Agriculture by certified mail. Cancellation becomes effective 30 days after the notice is received by the department.

These bonds are very similar to agricultural product dealer surety bonds, so applicants should be sure they’re purchasing the correct surety bond type for their licensing needs.

How to become a licensed commission merchant in Washington

To become a licensed commission merchant in Washington, applicants must complete the state-issued application, including the following information:

  • Type of commission merchant
  • Name, business location and telephone number
  • Mailing address
  • Type of business entity
  • Required licensing fees

For more licensing information, visit the "Additional Resources" section of this page. 

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