Florida Fertilizer Dealer Bonds Explained
Any company that wishes to market fertilizer products in the state of Florida is required by the Commissioner of Agriculture to provide a fertilizer dealer bond in the minimum amount of $1,000.
The bond acts as protection to the state, and ensures that fertilizer dealers truthfully report the volume of fertilizer they sell in the state, as described in Section 576.041 of the Florida Statutes. Fertilizer dealers are also obliged to pay the required fee per ton in order to stay in compliance with the terms of the bond.
Violating these terms can lead to action against the bond, known as a claim. The claim will serve to compensate the state for its loss, but the amount cannot surpass the total amount of $1,000. However, additional penalties may still apply.
Read on through the Questions section below for more detailed information about fertilizer dealer bonds in Florida. To find out about other bonding requirements in Florida, head to our dedicated page. For more questions, you can always contact our experts at (877)-514-5146.
Questions about Fertilizer Dealer Bond
What’s the cost of this bond?
The total amount of $1,000 refers to the maximum penalty that can be imposed in case you violate the Statutes. The premium paid for that amount is only $100.
Keep in mind, however, that the Department of Agriculture may require you to post a bond in a larger amount, in which case your bond’s premium will largely depend on your personal credit score. As a rough guide, most applicants pay between 1% and 3% if their credit score is high, and up to 10% if they have bad credit.
You can find more relevant information on the topic on our “What Does a Surety Bond Cost?” page.
Can I get bonded if my credit score is low?
Bonding companies consider applications with a low credit score or no credit history as high-risk. This is why those applicants pay higher premiums, but in all but a few cases, they can get bonded without any hassle.
The two exceptions that are sometimes encountered are applications of people going through an open bankruptcy, or who are late with their child support payments.
You can learn more useful information on our page dedicated to getting bonded with bad credit.
What is the application process like?
Applying for a fertilizer dealer bond is not a complicated process. You can quickly fill out our online application, and we’ll take care of the rest. Our helpful and knowledgeable experts will be in touch with you to answer your questions and help you provide all the paperwork you need.
Base on the information you provide in the application form, we will contact you with a personalized bond quote, free of charge. If you decide to move forward, your bond should be issued within two business days and sent to you in the mail.
If at any time you experience difficulties or have any questions you need answered, feel free to call us at (877)-514-5146. We would be happy to help!
How are claims handled for these bonds?
As long as you follow all applicable rules and regulations, declare the volume of fertilizer you sell and pay the required per ton fees (outlined in Chapter 576 of the Florida Statutes), you should have no concerns about claims.
However, if you violate the conditions of the bond, you may face a claim whose purpose will be to compensate the state. When you are notified of a claim, you must make good on it before it goes to court.
However, if you feel you are not in violation, you can contact the surety and ask for their assistance. You will have to provide written proof that the claim is groundless, and the surety will decide on their course of action upon evaluating all the circumstances. They may provide you with legal assistance in court.