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Michigan bonds

Michigan — Wholesale Potato Dealer Bond

Arrange the bond for your Michigan wholesale potato dealer license with the business name and security amount requested by MDARD. Start the Propeller application through The Southern Agency with those instructions ready.

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Recorded state
Michigan
Bond type
Agricultural Products / Produce / Feed Dealer Bond
Category
Agriculture & fisheries

What this bond does

Support the dealer's financial-responsibility obligation for wholesale potato purchases. MDARD's program accepts an approved bond or irrevocable letter of credit; use the option and amount directed for your license.

Who needs it
Wholesale potato dealers buying from Michigan growers or cooperatives for processing or resale, where MDARD's licensing and financial-responsibility requirements apply. Check the licensing exemptions before applying.
Who it protects
The bond provides security for covered payment obligations to Michigan potato growers and grower cooperatives. Recovery follows the bond and MDARD's claim process; it is not an unconditional promise that every unpaid transaction will be reimbursed.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Program Requirements

The wholesale potato dealer program combines licensing with proof of financial responsibility. The approved bond form or irrevocable letter of credit supports that requirement; the dealer still has to complete the license application.

Plan around the program's June 1 expiration date. Have the business's security instructions ready early enough to complete the application, check the issued instrument and deliver the licensing documents.

Bond Preparation

Purchase Now opens Propeller in a new tab. Apply using the dealer's legal name and the requested MDARD form and amount; you do not need an already issued bond to begin the application.

After issuance, check the completed bond against MDARD's instructions and submit it with the required licensing material through the accepted process. Keep a copy of the filed document.

Compliance and Filing

Keep the license, security documents and purchase records together. A change in the dealer's legal identity or security arrangements should be checked against the licensing instructions rather than left inconsistent across documents.

For a payment dispute, retain the purchase and delivery records and follow MDARD's current claim directions. Applying for a replacement bond is separate from presenting a claim under an earlier instrument.

Sources

Have these ready

  1. Have MDARD's requested bond amount and wholesale potato dealer form ready.
  2. Prepare the dealer's legal name and the information used on its license application.
  3. Check the applicable June 1 license deadline before starting the application.
  4. Keep records of purchases from Michigan growers and cooperatives available.

Questions about this bond

Who must carry this bond?

The MDARD program covers wholesale potato dealing with Michigan growers and cooperatives, subject to its exemptions. Use the licensing instructions for your business rather than assuming every potato purchase requires a bond.

Are there exemptions to this requirement?

Yes, exemptions exist for certain growers or cooperatives buying only seed potatoes and for dealers who handle less than 30,000 pounds of potatoes monthly.

How do farmers file a claim against a bond?

Contact MDARD's Agriculture Development Division for its current claim instructions. Keep purchase records, delivery information and evidence of the unpaid balance available; do not rely on a particular employee remaining the contact.

How should I plan for the license renewal?

The licensing program identifies a June 1 expiration date. Prepare the renewal and security documents ahead of the applicable deadline, and check the issued bond's continuation terms separately.

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