State Department of Agriculture reminds farmers to sell products to licensed farms

Around New York State

(WIVB)–Today, the New York State Department of Agriculture and Markets is reminding farmers, including dairy farmers, to only sell their products to licensed dealers.

Officials say the department requires farm product and milk dealers to be licensed and provide security for purchases made from New York State producers.

This ensures financial protection to farmers in the event of the dealer failing to pay.

According to the agricultural department, milk dealers must be licensed if they handle at least 3,000 pounds of milk per month. Dealers must renew those licenses every year. 

State officials tell News 4, licensed dealers who buy milk directly from producers or cooperatives must secure their purchases.

They can do so by either participating in the state’s Milk Producers Security Fund (MPSF) or by filing full alternate security in the form of a bond or letter of credit.

As outlined in Article 20 of the New York State Agriculture and Markets Law, farm product dealers are required to be licensed with the department.

Dealers requiring this license are those purchasing at least $20,000 worth of agricultural products and selling those products, whether in raw or processed form, at wholesale. 

According to the department, all agricultural products grown or raised in New York State are covered by the law except dairy, eggs, and timber.

“The Agricultural Producers Security Law provides financial protection for farmers against nonpayment for their products sold to licensed dealers. This financial protection consists of security in the form of a bond or letter of credit furnished by the dealer, and supplemental financial coverage from the Agricultural Producers Security Fund, which is funded by licensed dealers,” the State Department of Agriculture said.

For more information, visit the New York State Department of Agriculture website.

Troy Licastro is a digital content producer who has been part of the News 4 team since 2018. See more of his work here.

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