State Agricultural Dealer Laws
Introduction to the Compilation
A farm product dealer is an individual or entity that engages in buying, receiving, negotiating the sale of, or handling agricultural commodities for resale. Some states regulate these transactions to protect producers from non-payment by requiring licensing, bonding or other financial security, and establishing procedures for claims and enforcement. The following compilation presents key statutory provisions addressing licensing, products covered, protections for producers, bond or trust requirements, claims periods, filing mechanisms, and remedies.
This information is intended only to be an aid to researching state legislation. For example, this publication does not include case annotations, which a researcher must consult to thoroughly understand any particular statute. As such, this chart is intended for use solely as an educational tool and research aid, and not as a substitute for individual legal advice.
Bond/License Explanation
Most states with these protections require anyone buying, selling, or handling farm products for resale to be licensed through the state’s Department of Agriculture. To obtain or maintain this license, dealers must often post a surety bond or other form of financial security. This bond acts as a guarantee of payment to producers if a licensed dealer fails to pay for delivered products.
If a dealer defaults, producers can file a claim against the bond or participate in an administrative process managed by the state. The state then investigates and, if valid, uses bond funds to compensate unpaid sellers. This system helps protect farmers from financial losses while ensuring accountability among those who trade in agricultural products.
Trust Explanation
Under a trust system, when a farmer sells agricultural products to a licensed dealer, the dealer holds the proceeds from that sale in trust for the producer until full payment is made. This means the dealer’s assets related to those transactions legally belong to the farmer until the farmer is paid in full.
If the dealer becomes insolvent, goes bankrupt, or fails to pay, the trust gives the producer a priority claim over other creditors including banks or lenders with security interests. The trust can be statutory (created by law, as in Minnesota or under the federal Perishable Agricultural Commodities Act (PACA)) and does not require a separate written agreement.
To benefit from the trust protection, producers must usually file a claim within a set number of days after payment is due. Once a valid claim is filed, the state agency or court can enforce the trust to recover funds owed to producers. Posted August 11, 2026.
| State/Relevant Statutes | Products Covered? | Who is protected? | Who must be licensed? | License Form | Is there a Bond Requirement? | Additional protections? | Is there a private cause of action? | Claims Period/Where Filed? | Remedy Forms |
| California | “Farm product” meaning agricultural, horticultural, viticultural, vegetable products; poultry & poultry products; livestock & livestock products not for immediate slaughter; bees & apiary products; hay; dried beans; honey; cut flowers. Excludes milk products, seed, timber, aquatic products, certain cattle under federal bond schemes. | Producers/consignors (persons who ship or deliver farm products to commission merchants, dealers, etc.). | Any person engaged in the business of buying, receiving on consignment, soliciting for sale on commission, or negotiating the sale of farm products from a licensee or producer for resale shall be licensed as provided in this chapter. | 28-003 Long Form | Yes. The bond must be no less than $10,000 or 20% of the dollar volume of business, whichever is greater, unless the Director requires more. | N/A | Yes. Producers may file administrative claims with CDFA and also pursue civil actions for unpaid sums. | Claims must be filed no later than nine months from the date a complete account of sales was due; file claims with the California Department of Food & Agriculture (CDFA), Market Enforcement Branch. | Verified Complaint |
| Colorado
Colo. Rev. Stat. §§ 35-36-101 to 107 |
“Farm products” includes the following unprocessed products produced in CO or owned by any CO resident, dealer, or small-volume dealer: Agricultural, horticultural, viticultural, fruit, and vegetable products of the soil; Livestock and livestock products, except livestock held by the purchaser and not resold or processed within 90 days after the purchase date; milk; and honey. Also includes ensiled corn; baled, cubed, or ground hay; and industrial hemp. It does not include poultry and poultry products, timber products, nursery stock, commodities, or marijuana. | Colorado producers or owners who sell a farm product to another entity that intends to process, store, handle, or resell the products, or who coordinates the sale of the products on behalf of the producer/owner. | Any entity, party, or business that purchases for resale, handles, processes for resale, or stores farm products on behalf of any Colorado owner/producer, or that coordinates the sale (brokers, merchandisers) of farm products on behalf of a Colorado owner or producer. | All license applications: Farm Products Dealer Program | Department of Agriculture
Farm Product & Commodity Handler License Differences A11Y.pdf – Google Drive |
Farm Products Dealers are required to post a bond or letter of credit unless they are designated as a Cash Buyer or a Small-Volume Dealer. Bonds and letters of credit must be issued by a financial institution licensed to operate in Colorado, and letters of credit, as well as subsequent riders, must be issued on state forms. | N/A | No direct private cause of action against the buyer under the statute. Claims must first go through the Dept. of Agriculture’s administrative bond process. After CDA’s decision, sellers may pursue civil remedies if unpaid and outside the claims period, but the statutory protection itself is administrative. | Complaints must be received within 120 days of a transaction that falls within jurisdictional area. If calling on a bond or letter of credit, the timeline for eligibility is determined during the course of investigation and is dependent upon the time of transactions, type of transactions, number of interested or affected parties, and other case details. Claims must be filed with the Colorado Dept. of Agriculture (CDA) – Inspection & Consumer Services Div., Farm Products Program. | Review process is started upon direct contact with the Farm Products & Commodity Handler Program within the CDA. |
| Delaware | Fruits and vegetables, and for the purpose of this chapter shall be construed to include, but not by way of limitation, apples, cabbage, cantaloupes, cucumbers, melons, potatoes, sweet corn and tomatoes. | Producers and auction markets with whom a licensed dealer does business. | Persons who solicit or receive agricultural products from a producer on consignment, purchase for resale at wholesale, or negotiate purchases or sales as a broker. | Licensed and Bonded Dealers in Agricultural Products – Delaware Department of Agriculture – State of Delaware | The dealer must submit a bond of at least $25,000 (or greater depending on prior gross business), up to $50,000 (or up to $100,000 after a hearing). | N/A | Yes. | No fixed date to file claims but must be filed with Delaware Department of Agriculture. | Reach out directly to the Department. |
| Florida | Agricultural products produced in Florida, including horticultural, floricultural, viticultural, forestry, dairy, poultry, bee, and other farm or garden products. | Florida producers, their agents or representatives, and dealers who sell agricultural products to other dealers. | Any Florida-based receiver of any of the covered agricultural products and any producer who acquires product from other producers or their agents. | Agricultural Dealer Licenses – Florida Department of Agriculture & Consumer Services | Yes. A surety bond or certificate of deposit is required; minimum $5,000. | N/A | Yes. | Claims must be filed prior to 6 months following sale; file with the Florida Department of Agriculture and Consumer Services – Bureau of Agricultural Dealer’s Licenses. | Agricultural Dealer Licenses – Florida Department of Agriculture & Consumer Services |
| Georgia
GA Code Ann. §§ 2-9-1 through 2-9-9; 2-9-11 through 12; 2-9-16 |
Fruits, vegetables, pecans, and cotton but does not include dairy products, tobacco, grains, and other basic farm crops. | Producers or their agents or representatives who handle agricultural products. | Dealers in agricultural products who do business in the State of Georgia; those who must be licensed under these articles. These dealers must be licensed by the Georgia Commissioner of Agriculture. Cash buyers are excluded. | Licenses and Bonding for Warehouses and Dealers in Ag Products | Georgia Department of Agriculture | Yes, licensees must be bonded. The amount of the bond is set by the Georgia Commissioner of Agriculture not to exceed the volume of purchases of covered products in Georgia, however, that the minimum amount of such bond shall be $10,000.00 and the maximum amount of such bond shall be $230,000.00, further, that in the case of pecans, such bond shall not exceed $500,000.00. | N/A | Yes. | 180 days following breach by licensee; bond claims are with the Georgia Commissioner of Agriculture. | Agricultural Products Complaint | Georgia Department of Agriculture |
| Hawai’i | All agricultural, horticultural, and vegetable produce of the soil; poultry, poultry products, livestock, and livestock products, but excludes (1) timber or timber products; (2) milk or milk products; (3) sugarcane or sugarcane products; or (4) pineapple or pineapple products. | Producers or producer-consignors | Any commission merchant, dealer, broker, agent, processor, or retail merchant in farm products. | DL-2Application-2010-04-15.p65 | Yes, in an amount specified in the rules of the department, but not to exceed $10,000. | N/A | Yes. | No fixed date, but file with the Hawai’i Department of Agriculture (HDOA) | Microsoft Word – DL-14 Statement of Complaint 2016-03-02.doc |
| Minnesota | Perishable farm products including: fresh fruits, vegetables, and mushrooms; milk and cream and products manufactured from milk and cream; and poultry and poultry products, including eggs. | Minnesota producers of the listed agricultural products who sell to Minnesota-based wholesale dealers of food processors of the covered products. | Any Minnesota wholesale dealer or food processor who purchases or contracts with other Minnesota dealers or farmers. | Food Licenses | Minnesota Department of Agriculture | No. Repealed. | Trust which operates like a lien against the dealer’s property and takes priority over security interests others may have. | Yes. | All claims for unpaid product under the statutory trust must be filed within 40 days of the date that payment was due or 40 days after a payment instrument to the seller for the perishable farm products is dishonored, whichever is later. Bond claims are filed with the Minnesota Department of Agriculture and Markets – Fruit, Grain and Vegetable Division. Trust claims must be filed in the District Court of Minnesota where the licensee is located. | Farm Products Dealers Trust | Minnesota Department of Agriculture |
| New Jersey | Any perishable agricultural commodity or hay, straw or grain. | Any person engaged in the business of growing or producing any agricultural commodity in this State, or any agricultural co-operative association. | Any New Jersey commission merchant, dealer or broker. | Licensing and Bonding | Yes, licensees must be bonded. The amount of the bond, depending on sales volume is between $5,000 and $150,000. | N/A | Yes. | Claims must be filed within 90 days of the date payment was due; file with the New Jersey Secretary of Agriculture. | Reach out directly to the Department. |
| New York | Agricultural, horticultural, viticultural, vegetable products, poultry & poultry products, livestock & livestock products. | Producers (farmers) in New York State who sell their farm products to licensed dealers. | Dealers, brokers, commission merchants who buy, receive, handle or resell farm products from producers within the state. | Farm Products Dealer Licensing | Agriculture and Markets | Yes. Not less than $3,000 nor more than $400,000. | Supplemental financial coverage is provided by the Agricultural Producers Security Fund, which is funded by the licensed dealers. Producers are provided further protection through a provision of the Article 20 Law, which authorizes a statutory trust (replaces the producer lien, effective July 20, 2005) in the event a dealer defaults in payment. | Yes. | When the Commissioner gives notice to producers, claims must be filed within 30 days of such notice. No claims allowed for transactions more than 120 days after the earliest unpaid transaction date as of claim filing. Claims must also be filed no more than 365 days after sale and delivery. File with New York State Department of Agriculture & Markets – Commissioner of Agriculture & Markets. | Farm Products Dealer Licensing | Agriculture and Markets |
| Texas | Fresh produce grown in Texas, whether or not packed in ice or held in cold storage, excluding those manufactured into a different kind of food. | Producers or growers of perishable commodities. | Persons who “handle” perishable commodities (buy for resale, sell, offer to sell, process, broker, or ship for purpose of selling) need a license. | Handling and Marketing of Perishable Commodities | No. | N/A | Yes. | Claims must be filed within two years from the date payment was due with the Texas Department of Agriculture. | HMPC Program Complaint Information |
| Washington | Produce as well as other products such as poultry, seed, mint and mint oil, hay and grain. | Washington growers and producers, and cosignors. | Washington commission merchants, dealers, limited dealers, brokers, and cash buyers. | WSDA Form | Yes. Licensees must post a bond. Minimum bond is $10,000; amount increases with volume of business. | N/A | Yes. | Claims must be filed within 60 days of the director’s request with the Washington State Department of Agriculture, Commission Merchants Program | Reach out directly to the Department. |
| Wisconsin | Milk, grain, and processing vegetables. | Agricultural producers (farmers) and producer agents who sell those covered products to contractors (dealers). | Contractors (dealers) who purchase grain, milk, or processing vegetables from producers in Wisconsin. | DATCP Home Vegetable Contractors | Vegetable contractors are required to participate in the Agricultural Producer Security Fund. | N/A | N/A | Default claims must be filed within 30 days after the claimant first learns of the default with the Wisconsin Department of Agriculture, Trade and Consumer Protection’s Agricultural Producer Security Section | DATCP Home Vegetable Contractors |