New Jersey dairy dealer bonds.
From $100.
New Jersey licenses dealers who buy raw milk or cream from producers on credit, and conditions the license on a surety bond filed with the Department of Agriculture under N.J.S.A. 4:12A-1 et seq. The bond protects dairy producers against non-payment. Pricing is 1% of the bond amount, with a $100 minimum.
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How much does a New Jersey dairy dealer bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard dairy dealer bond — enter your amount, pay, and file with the Department of Agriculture. Here is the whole thing:
Apply online
Your business details, the bond amount your license requires, and the effective date — that is the application.
Issued on the spot
No credit check up to $25,000.
File with the Department of Agriculture
Submit the executed bond with your milk-dealer license application to the Division of Marketing and Development. Wet-ink originals mailed on request.
What it is and who needs it.
What the dairy dealer bond actually covers
Like its produce rules, New Jersey protects dairy farmers from non-payment. Under N.J.S.A. 4:12A-1 et seq., dealers who buy raw milk or cream from producers on credit must hold a milk-dealer license from the Department of Agriculture, and the license is conditioned on a surety bond.
The bond runs for the benefit of the dairy producers you buy from. If a dealer fails to pay for milk or cream received on credit, the affected producers can recover against the bond — it's a payment guarantee for the farm, not insurance for the dealer.
The amount is set by Department rule. For dairy it's generally at least one and one-half times the maximum monthly value of milk or cream purchased or received over the preceding 12 months — a higher multiple than the produce formula, reflecting the volume and credit terms of milk buying. The Department can also accept a letter of credit or other securities. Confirm your required figure on your license paperwork.
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 term is set on the carrier’s application; the premium covers the period shown there.
Renewal falls on the statutory date, July 1, in the year your term ends.
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 the Department of Agriculture. Submit the executed bond with your milk-dealer license application to the Division of Marketing and Development. Wet-ink originals mailed on request.
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.
No credit check up to $25,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount your license requires — the executed bond is generated instantly, ready to file.
Start the application →Common questions.
Other New Jersey bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Dairy dealer bond, issued today.
Pricing from $100. Enter your amount and file with the Department of Agriculture the same day.