Texas Agricultural Cooperative Agreement Bond

Texas Agricultural Cooperative Agreement Bond

The Texas Department of Agriculture (TDA) requires agriculture facilities that produce fruits, vegetables, and/or various nuts to enroll in the Cooperative Inspection Program. To be eligible for licensure and the program, a Cooperative Agreement Bond is required of the business owner.

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Jet Insurance Company provides the Cooperative Agreement Bond to act as a fiscal assurance for the Texas Department of Agriculture that the licensee will pay for all Cooperative Inspection Program services provided. If the agriculture facility fails to pay for the food grading, inspection, and/or enforcement services that were supplied by the TDA, the surety bond may be used to cover the costs of these past due fees.

What Is the Bond Amount and Price for the Texas Cooperative Agreement Bond?

The Texas Department of Agriculture will determine your bond amount to participate in the Cooperative Inspection Program. The limit is likely based on the expected costs of the offered food grading, inspection, and enforcement services. 

At Jet, the cost of the Cooperative Agreement Bond is a small percentage of the custom bond amount and is based on a soft credit check of the agriculture business owner. For example, applicants that are seeking up to a $15,000 limit can pay as low as $100 for a one-year bond term. For additional bond amounts and prices, take a look at the chart below.

Bond Limit1 Year Cost
Up to $15,000$100
$25,000$250
$30,000$500
Texas Cooperative Inspection Program Bond Cost

Jet is a direct surety company so you won’t have to worry about an elongated application process through multiple agents. Simply click the “View Your Bond Price” button above and receive approved rate options directly from one of our in-house underwriters within minutes. It’s that easy!

The Texas Cooperative Inspection Program Agreement Bond Process With Jet

Jets application for the Cooperative Agreement Bond can be completed fully online. We will require some general information such as your contact details, an indication of the bond limit needed, and your social security number for a soft credit check (this won’t affect your current score). Once you have submitted your application, a Jet underwriter will conduct a quick review of the document. As soon as this process has been completed, approved rate options will be sent to you via email that are ready for immediate purchase. Just fulfill payment and receive a copy of your receipt and bond form instantly. 

Jet provides the free option to have our team file your bond for you! However, if you would prefer to take care of this step yourself, you may select the option to do so at checkout. The original signed and sealed Cooperative Agreement Bond form must be submitted to the Texas Department of Agriculture at the following mailing address:

Texas Department of Agriculture
Cooperative Inspection Program
11044 Research Blvd., Suite D225
Austin, TX 78759

As for license applications, you can find various forms on the TDA Licenses and Registrations webpage. 

Enrollment in the Texas Cooperative Inspection Program must be renewed annually which means your Cooperative Agreement Bond will require renewal as well. No need to worry though! The Jet team will send you a renewal invoice prior to your official bond expiration date by mail and email. Simply complete the standard payment due and your bond will remain active with the TDA for another term. 

Due to the Cooperative Agreement Bond form requiring an annual expiration date, you are unable to cancel your bond with Jet. If you choose to not renew, your surety bond will officially expire and be released of liability with the TDA once the filled-in date on your bond form has occurred. 
If you ever have any questions regarding your Cooperative Agreement Bond, feel free to contact the Jet team at [email protected] and we will be happy to help you out!

How Does a Licensed Agriculture Facility Avoid Texas Cooperative Agreement Bond Claims?

The Texas Department of Agriculture provides and manages the Cooperative Inspection Program to ensure that all fruits, vegetables, and tree nuts that are being produced through licensed agriculture facilities are up to the state’s standards. This is done through food grading, inspections, and enforcement services. Agriculture business owners who fail to comply with the regulations of the program may face consequences such as a loss of license, suspension or revocation from participation in the program, and/or a bond claim.

A claim on the Cooperative Agreement Bond will only occur if the TDA finds that your business has been subsequently past due on food grading, inspection, and/or enforcement service fees. The surety bond will be used to cover these fees and any other financial costs faced by the TDA due to your payment transgressions. All you have to do to make sure this scenario does not occur is pay your bills to the TDA on time and in full. 

If you receive a claim notice from the Texas Department of Agriculture, contact Jet as soon as possible. To begin the process, we will ask that you provide us with all available information and documentation regarding the claim. These important details will be used for our own review and investigation of the alleged program violation.

Per the Texas Cooperative Inspection Program Agreement Bond form, Jet is legally obligated to payout justified claims up to the bond’s limit. Claim payments will never exceed the bond amount. You, the licensed agriculture facility business owner, are still responsible for your own actions and the actions of your employees. Therefore, you will be expected to reimburse Jet for the claim payout that was made on behalf of your financial transgressions. Failure to do so will lead to future difficulties obtaining surety bonds within the State of Texas.

Texas Agricultural Cooperative Agreement Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: