A South Carolina agricultural dealer bond is required by SC Statute (SECTION 46-41-60). A "dealer" is any individual or business engaged in the buying, receiving, selling, exchanging, negotiating, processing for resale or soliciting the sale, resale, exchange, or transfer of any agricultural products purchased from a producer or his/her representative, or received on consignment from a producer to be handled on net return basis from the producer. The dealer must must file the surety bond to guarantee the diligent and hones accounting for any payment to producers, their agents or representatives, of the proceeds of all agricultural products handled or sold by the dealer.
The surety bond must be file with the Commissioner of Agriculture in the amount of twenty-five thousand dollars ($25,000) or an amount equal to the maximum amount of business transacted or estimated to be transacted in any month by the the licensee, whichever is lesser. The agricultural product dealer bond must be executed by a surety company authorized to transact business in South Carolina. If in the discretion of the Commissioner an increase in the bond penalty is warranted based on the volume of agricultural product being handled by the licensee, he may do so at any time.
Hemp is now legal to cultivate, handle and distribute at the "federal" level. South Carolina is formalizing rules regarding the cultivation, processing and distribution of hemp. In those states where hemp is permitted, licensing is generally regulated by the respective departments of agriculture, South Carolina included. The South Carolina Attorney General has emitted an advisory opinion stating, "SLED is informed and believes that only individuals and businesses who are licensed by the Department of Agriculture can legally "cultivate, handle, or process hemp" in South Carolina in accordance with the prevailing agricultural product article without violating South Carolina law. Although unconfirmed, hemp intermediaries will likely be obligated to likewise file a hemp dealer bond or hemp handler bond. Surety One, inc. will be a market for these obligations. Follow developments in the South Carolina hemp industry here. Industrial hemp and CBD product legalization will create enormous economic opportunities for farmers and agricultural product intermediaries.
Applying for a South Carolina agricultural product dealer bond is simple with a surety underwriter that possesses knowledge and experience with the agricultural sector. National surety bond leader, Surety One, Inc. offers both surety and fidelity bonds needed by farm trade professionals dealers, handlers and hemp operators in every state where they are required. Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat about an agricultural product dealer bond. We are available to help you understand the commodity dealer and handler bond process specific to your need.
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