USDA Perishable Agricultural Commodities Bond
Overview
Buying or selling fresh or frozen fruits and vegetables in interstate commerce requires federal registration — and that registration requires a surety bond. Licensed dealers, commission merchants, and brokers under the Perishable Agricultural Commodities Act (PACA) must file this bond with the USDA to protect unpaid sellers and growers. It guarantees that your business will pay for the perishable agricultural commodities it buys or handles. If you've received a PACA license application requirement, this is the bond you need.
Who Needs This Bond?
Dealers, brokers, and commission merchants who buy, sell, or negotiate the sale of fresh or frozen fruits and vegetables in interstate or foreign commerce need this bond. Any business handling more than 2,000 pounds of perishable agricultural commodities on any given day is subject to PACA licensing requirements. Wholesalers, produce distributors, and foodservice intermediaries operating across state lines are the most common applicants. If the USDA has told you that your PACA license requires a surety bond, you're in the right place.
What is this Bond For?
This bond protects produce sellers and growers from nonpayment by PACA-licensed buyers and handlers. Under the Perishable Agricultural Commodities Act, sellers have trust rights in unpaid produce and proceeds — and your bond backs your financial obligation to honor those rights. If your business fails to pay for commodities received, the bond gives injured parties a financial remedy. It is a condition of licensure, not optional coverage.
When is it Required?
Applying for or renewing a PACA license through the USDA Agricultural Marketing Service triggers the bond requirement. The USDA will not issue or maintain a license for businesses above the volume threshold without a valid surety bond on file. If your license is suspended or revoked for nonpayment, a new bond is required before reinstatement. This bond must remain active and continuous for as long as your PACA license is in force.
Where Does it Apply?
This is a federal bond administered by the USDA Agricultural Marketing Service and it applies to produce businesses operating in interstate or foreign commerce anywhere in the United States. There is no single state that governs it — the federal PACA program covers all 50 states. Wherever your produce business is located, if you're licensed under PACA, this is the bond required.
How to Buy Online
Click 'Buy This Bond Online' to open the secure surety portal in a new tab and start your application immediately. You'll enter your business details, bond amount, and complete the process entirely online — no agent callback required. Once approved, your bond document is ready to submit to the USDA Agricultural Marketing Service with your PACA license application.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and built for business owners who need to move fast — not wait on hold. Our nationwide catalog includes the USDA PACA bond, and our online portal lets you buy it today without speaking to an agent. Fast, direct, and built for how real businesses operate.