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Georgia Agricultural Product and Grain Dealer/Warehouse Bonds
Dealers and Warehousemen of agricultural products and grain in Georgia are required by the Georgia Commissioner of Agriculture to be licensed and bonded. Depending on the specific trade performed these businesses will either need a Dealer in Agricultural Products Bond, Grain Dealer Bond or Warehouseman Bond.
Save 50% or more on you bond with Jet! When you buy your bond with Jet Insurance Company, we cut out the middlemen who charge you more for the bond with their fees and commissions. Get your bond fast and at a low rate with Jet!
How is the Pricing Determined for Georgia Agricultural Dealer and Warehouse Bonds?
The cost of these surety bonds is a percentage of the bond amount (or limit) required by the Commissioner of Agriculture. Below are how the bond amounts are determined for the various license types. These may not be exact as the Commissioner has the right to adjust the bond amount required, so be a good boy or girl.
| License Type | Minimum | Maximum | Calculation |
|---|---|---|---|
| Dealer in Agricultural Products | $10,000 | $230,000 | Equal to the monthly amount of products purchased and/or sold in a month (Estimated for new dealers) |
| Grain Dealers | $20,000 | $300,000 | Equal to 20% of the average of single best months from the 3 prior years (Estimated for new dealers) |
| Pecan Dealers | $10,000 | $500,000 | Equal to the monthly amount of products purchased and/or sold in a month (Estimated for new dealers) |
| Warehouses | $20,000 | $300,000 | No more that 15% of value of products stored in a month |
| Warehouses (Cotton) | $20,000 | $300,000 | $5 per bale stored in a month |
With Jet the price for these license types can be seen below, however, the rates may vary based on the personal credit of the applicant. Jet can offer monthly rates starting at $10 a month for Agricultural Products Dealers. Grain Dealers and Warehouses start at $20 per month. Cancel anytime.
| Bond Type | Bond Limit | Monthly | 1 Year |
|---|---|---|---|
| Agricultural Products | $10,000 | $10 | $100 |
| $50,000 | $50 | $500 | |
| Grain Dealer | $20,000 | $20 | $200 |
| $100,000 | $100 | $1,000 | |
| Warehouseman | $20,000 | $20 | $200 |
| $100,000 | $100 | $1,000 |
For Grain Dealer and Warehouses additional underwriting may be required. One of our seasoned underwriters will reach out, if needed, to request business details and/or financial statements.
Why Is the Grain and Agricultural Product Bond Required?
The Georgia Department of Agriculture’s goal is to protect the farmer’s financial well being from dealers, brokers and warehouses. The Georgia State Legislature, long before most of us were born, set laws for Georgia Agricultural Dealers, Grain Dealers and Warehouses into place surrounding fair practices and included a safeguard should financial damage occur and go unsettled. That safeguard for the farmer is the surety bond. And you can see why the bond is required to get a license as it is for the benefit of others and not dealers or warehouseman.
Jet Insurance Company, by providing this surety bond to the State of Georgia, gives an added level of financial credibility to the agricultural product dealer or warehouseman. Should a licensed dealer cause damage and not make proper restitution to the farmer, the third party surety carrier, Jet, will. This arrangement helps to fulfill the Agricultural Commissioners goal to protect the farmers of Georgia. One can easily imagine how a typical consignment or warehouse arrangement can create risk for farmers as they expect to be paid or have their produce handled appropriately.
How to Apply for the Agricultural Product and Grain Dealer/Warehouse Bonds With Jet
Applying through Jet will require less of you and thus take less time than most companies do to renew your bond. The application takes minutes and in some cases we can offer the bond for purchase online immediately.
You will need to know your bond amount required to apply for the bond. The calculation for the bond amount is supplied above in a chart, but it is best to have that number confirmed with the Commissioner and if you have been in business for a while why not request a lower limit?
When it comes to larger bond amounts and certain bond types, Jet may require additional information before we can offer a price. After we receive the online application an underwriter will contact you if need be. We may need to review a business and personal financial statement.
How Does These Surety Bonds Get Filed With the Georgia Department of Agriculture?
After purchase the Jet Insurance Company will mail the original bond form with power of attorney to the Commission of Agriculture. You will receive a copy via email for your records. You won't have to worry about a thing, we will file the bond for you.
Commissioner of Agriculture - Bond Section
2055 Eisenhower Pkwy Box 18
Macon, GA 31206
What Happens if I Need to Cancel My Bond?
If you decide to cancel your bond, please email us a copy of the cancellation at [email protected]. If you paid for your bond on annual terms you may be eligible for a prorated refund. For those on monthly terms there won’t be a refund, but you can cancel at any time.
Jet will file a cancellation notice with the Commissioner. Each bond has a 90 day grace period wherein the bond remains active, just in case any claimants show up as the dealer or warehouse closes shop. and must be sent to the Commissioner of Agriculture at the same address listed for newly filed bonds.
How Do I Renew My Georgia Agricultural Dealer or Warehouse Bond With Jet?
These bonds are defined as continuous until canceled which means the bond will stay active so long as Jet does not cancel the bonds. We will not cancel the bond so long as we get timely payment whether you are on monthly or annual terms.
If the bonded amount required by the Commissioner changes, we can help with that too. Just notify us of the change and we will apply the correct bond amount with an adjusted premium rate upon the renewal of the bond. Monthly rates are typically adjusted annually, if need be.
Read More About Dealer and Warehouse Bonds
Bond Claim Process
Read more about the Dealer and Warehouse claim processes.
Georgia Grain Dealer Bond Example
