USDA PACA Bond

Texas USDA PACA Bond

Perishable Agricultural Commodities Act security

Produce dealers subject to PACA may need USDA surety depending on license path.

Overview

What Is a Texas USDA PACA Bond?

A PACA bond helps secure payment obligations in the perishable produce trade under federal law.

Key Provisions
  • Guarantees compliance with Perishable Agricultural Commodities Act
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Perishable Agricultural Commodities Act up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
United States of America (USDA)
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Perishable Agricultural Commodities Act
  • Satisfy United States of America (USDA) filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Texas produce dealers and brokers whose PACA path requires surety.

Who Is Required to File
  • Applicants required by USDA Agricultural Marketing Service
  • Texas businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Texas markets
Requirements

What You Need to Apply

Confirm USDA PACA bonding instructions for your license class.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: USDA - PACA path-driven amount
  3. Texas obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Texas requirement

    Share your license type, court order, or obligee form and the exact penal sum required by USDA Agricultural Marketing Service.

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to United States of America (USDA) or for your Texas filing package.

FAQ

Frequently Asked Questions

What is the required amount for a Texas usda paca bond?

The amount is USDA - PACA path-driven amount, as set under Perishable Agricultural Commodities Act and confirmed with USDA Agricultural Marketing Service.

Who is the obligee on a Texas usda paca bond?

The obligee is typically United States of America (USDA). Always match the exact name on the Texas form.

How long does it take to get the bond?

Many Texas filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Texas license or filing does not lapse.

Authority Resources

USDA Agricultural Marketing Service

ams.usda.gov

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578