Michigan dairy plant bonds.
From $100.
The producer-payment security a Michigan milk plant provides to the Department of Agriculture and Rural Development (MDARD) so the dairy farmers who ship to it get paid. Pricing is 1% of the bond amount MDARD sets, $100 minimum — your exact price appears at the application. One soft credit pull, never a hard inquiry, and it never affects your score.
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How much does a Michigan dairy plant bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Apply to approved in one sitting.
Producer-security bonds may run one soft credit pull, then issue. Here is the whole thing:
Apply online
Your plant details, the security amount MDARD set, and the effective date — plus consent to a soft credit check if one applies. That is the application, and your exact price shows up at the end.
Reviewed & approved
Most of these clear quickly; if underwriting needs anything on a larger amount, you hear from an underwriter within 48 hours. Any credit check that runs is a soft pull that never affects your score.
File with MDARD
Receive the executed bond on the form MDARD accepts, ready to submit to the Lansing office before shipments are received. Wet-ink originals mailed whenever the department insists.
What it is and who needs it.
What the dairy plant bond actually covers
Michigan regulates milk plants through MDARD under the Manufacturing Milk Law and the Grade A dairy program. A milk plant that buys raw milk from producers must post producer security — most commonly a surety bond — so the dairy farmers who ship to it are protected against a default in payment.
The bond is payable to MDARD on a form it provides or accepts, and is conditioned on the faithful and proper discharge of the plant's duty to pay producers when payment is due. It is continuous and cancellable only on at least 90 days' written notice to MDARD.
The amount is set by the department — generally the value of your greatest 30-day milk receipts in your most recent fiscal year, or the greatest 30-day receipts anticipated in the licensing period, whichever is greater. Enter that figure and apply; your price is 1% of that amount, $100 minimum, with a soft credit check that never affects your score.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with MDARD. Receive the executed bond on the form MDARD accepts, ready to submit to the Lansing office before shipments are received. Wet-ink originals mailed whenever the department insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, then your price.
These are the actual underwriting fields, including consent to a soft credit check that never affects your score. Enter the security amount MDARD set and submit.
Start the application →Common questions.
Other Michigan bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Producer security MDARD will accept.
Priced at 1% of the bond amount, $100 minimum. Enter the amount MDARD set and file before shipments start.