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All entities that purchase raw milk, fruits, vegetables, live poultry, eggs, hay, grain, or straw from New Jersey producers on credit are required to be licensed and bonded by the New Jersey Department of Agriculture.  These services are designed to protect New Jersey farmers against non-payment for their products.

Commission Merchants (Produce)
Acceptable Securities

Acceptable securities for issuance of a license include surety bonds, as well as other securities, including but not limited to, irrevocable letters of credit, time certificates of deposit and U.S. government bonds. Securities received by the Department range in value based on the value of agricultural commodities purchased from New Jersey producers on a credit basis.  The surety amount posted by a produce dealer must be equal to the estimated maximum monthly value of products purchased or received during the preceding 12 months, up to $150,000.

Fines

Any person purchasing produce on a credit basis without first obtaining a license is subject to a fine of up to $3,000 per day for each day of operation and producers who knowingly sell to unlicensed buyers may also be subject to penalties.

Financial protections

New Jersey producers must determine whether or not the prospective buyer is licensed and bonded by the New Jersey Department of Agriculture (NJDA) prior to selling commodities on a credit basis. This can be accomplished by asking the buyer to show his/her license or by contacting NJDA at the phone number and/or e-mail address given below.


Commission Merchant (Produce)

Application  
Bond Form  

 
Permit to Purchase Milk and Cream from Producers (Dairy)
Acceptable Securities
Acceptable securities for issuance of a license include surety bonds, as well as other securities, including but not limited to, irrevocable letters of credit, time certificates of deposit and U.S. government bonds. Securities received by the Department range in value based on the value of milk or cream purchased or received from a New Jersey producer.  The surety amount posted must be not less than one and one-half times the maximum monthly value of milk or cream purchased or received during the preceding 12 months.

Fines
Any person purchasing milk or cream without first obtaining a license is subject to a fine of $50.00 for the first offense and $100.0- for the second and each subsequent offense.  Each day’s receipts constitutes a separate violation.

Financial protections
New Jersey producers must determine whether or not the prospective buyer is licensed and bonded by the New Jersey Department of Agriculture (NJDA) prior to selling milk or cream. This can be accomplished by asking the buyer to show his/her license or by contacting NJDA at the phone number and/or e-mail address given below.

 

Dairy
Application  
Bond Form  

Contact:
Anne Marie Ference
New Jersey Department of Agriculture,
Division of Marketing and Development
Anne.marie.ference@ag.state.nj.us
(609) 777-0098
FAX (609) 984-2508