In order to acquire a milk dealer license, milk dealers must purchase a surety bond. Milk dealers are people, including corporations, subsidiaries and affiliates of said corporations, who buy, manage or sell milk, or negotiate for the sale or purchase of milk. Surety bonds for milk dealers guarantee the licensed distributor will punctually pay the quantity outstanding to the following on or before the last day of each month, or on the first fifteen days of each month. Dates are derived from a formula or value set by the New York Commissioner of Agriculture and Markets or the date of payment set by a federal milk marketing order. Price can also be set by the producer, any market administrator, or other duly-appointed agent under any official order valid to milk produced within the State of New York for milk obtained from New York producers within the license period.
Cost of New York Milk Dealer Bond
The bond premium for the New York Milk Dealer Bond is a slice of the bond amount the milk dealer must pay the surety. These premiums depend on the milk dealer’s credit score and the amount of the bond and is set by the New York Commissioner of Agriculture and Markets. As noted in Section 258-B of the Agriculture and Markets Law of the State of New York, the bond quantity must be 12 times the amount equivalent to the
- Amount remaining in the equivalent two-month period to the equalization of producer settlement fund, divided by the amount of days in said months.
- Value of milk bought or obtained from producers in two consecutive months during the previous twelve months, and the amount outstanding in the same two-month in which the dealer acquired or collected the maximum aggregate value of milk divided by the amount of days in said two months.
Colonial Surety Company offers a quick and digital way for dealers to obtain their New York Milk Dealer bonds. Our online process allows you to quote, purchase, print or e-file your bond from your computer or mobile device.
Purchase New York Milk Dealer Bond
Colonial Surety Company allows new and existing businesses to purchase their surety bonds for their required licenses and permits online. Simply utilize the bond classification dropdown to locate the Milk Dealer license and permit, get your quote, and print your bond. It’s that simple. Contact us today to learn more about New York’s Milk Dealer bond.