PACA license bonds.
Produce dealers. From $100.

A produce dealer subject to the Perishable Agricultural Commodities Act can be required by USDA AMS to file a surety bond to obtain or keep a PACA license — typically after a violation or a financial-responsibility concern. The premium is 2% of the bond amount, with a $100 minimum — enter your figure and your exact price appears at the application.

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Required by USDA AMS under the Perishable Agricultural Commodities Act (7 U.S.C. §499 et seq.)

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Conditions a PACA license — for an applicant or licensee AMS wants bonded

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A quick soft credit check may apply — never a hard inquiry, no impact on your score

From $100your exact price at application2% rate$100 minimumSoft pullnever affects your score

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How it works

Three steps. One sitting.

Your PACA license is waiting on this bond. Here is the whole process:

TODAY · ONLINE

Apply once, online

Business details, the bond amount AMS set, and an effective date. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

SAME DAY

File with USDA AMS

Receive the executed PACA surety bond ready to file with the PACA Division to obtain or maintain your license. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the PACA bond actually guarantees

The Perishable Agricultural Commodities Act (7 U.S.C. §499 et seq.) requires dealers, brokers, and commission merchants who handle fresh and frozen fruits and vegetables in interstate or foreign commerce to be licensed by USDA AMS and to deal fairly and promptly with the people they buy from.

Most licensees never post a bond. But under Section 4(e) of the Act, AMS can require a surety bond in a form and amount it finds satisfactory — commonly as a condition of licensing after a sanction, a payment problem, or where an applicant is rebuilding eligibility. A licensee that fails to maintain a required bond can have its license suspended.

The bond stands behind the dealer’s obligations to produce sellers. It is a three-party guarantee — you, the surety, and the United States as obligee — and it is not insurance for you: if the surety pays a valid claim, you repay the surety. Confirm with the PACA Division whether a bond applies to you and in what amount.

7 U.S.C. §499 et seq. (PACA §4(e)) · 7 CFR Part 46The Perishable Agricultural Commodities Act, 1930 (7 U.S.C. §499a et seq.; implementing rules at 7 CFR Part 46) licenses produce dealers through USDA AMS. Under Section 4(e), AMS may require a surety bond in a form and amount satisfactory to the Secretary as a condition of a license, and may suspend a license if a required bond is not maintained. A bond is not required of every licensee — confirm with the PACA Division whether and in what amount one applies to you.

You need this bond if you are

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A produce dealer, broker, or commission merchant AMS has told to post a PACA bond

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Applying for a PACA license where AMS conditions issuance on a surety bond

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Rebuilding eligibility after a sanction or a financial-responsibility concern

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Keeping a license in good standing that requires a bond on file

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

How much is the PACA bond?The premium is 2% of the bond amount, with a $100 minimum. The bond amount is the figure AMS specified for your situation. Enter that and your exact price appears at the application.

Does every PACA licensee need a bond?No. Most do not. Under Section 4(e), AMS requires a surety bond only when it finds one warranted — often as a condition of licensing after a sanction or payment problem. The PACA Division can confirm whether a bond applies to you.

What happens if I let the bond lapse?If AMS required the bond and you fail to maintain it, your PACA license can be suspended. We track the term and send renewal notices 60 and 30 days out so a required bond stays in force.

Who requires it?USDA’s Agricultural Marketing Service, through the PACA Division, under the Perishable Agricultural Commodities Act (7 U.S.C. §499 et seq.).

Is there a credit check?A quick soft credit check may apply, which never affects your score — it’s never a hard inquiry. It informs approval only — price is set by the bond amount, at 2% of the bond amount ($100 minimum), not by a credit tier.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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Clear the PACA bond requirement.

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