The Agriculture Commissioner of New York state has reminded farmers there to sell only to dealers prepared to make purchases guaranteed by letters of credit (L/Cs) or a bond.

Darrel Aubertine has been reminding farmers of their legal obligations as well as the benefits of selling farm produce according to the New York State Agriculture and Markets Law.

Licensed dealers

The L/C or bond protection is required under Article 20 of this law, which is more commonly referred to as the Agricultural Producers Security Law.

It stipulates that farmers should only sell to dealers properly licensed in New York State.

Financial security

Licensed dealers have to provide financial protection against an order for agricultural produce by putting up security in the form of an L/C or a bond.

Supplemental financial protection for farmers is provided from the Agricultural Producers Security Fund, which is funded by licensed dealers.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.