- Q: What is a Farm Products Produce Dealer's License?
A: The license required to purchase or broker produce from Colorado producers, owners, and dealers for resale or processing.
- Q: Is a dealer license required for all Produce purchases?
A: No, produce purchased for your own consumption is exempt from the law and no license is required for those purchases.
- Q: When are you required to have a Produce Dealer License?
A:
- When you purchase produce from Colorado owners or producers for resale or processing; or
- When you solicit or negotiate sales of produce (broker) between the seller and purchaser; or
- When you receive on consignment or solicit produce for sale on commission; or
- When you accept produce in trust from the owner for resale; or
- When you sell or handle produce for the account of or as an agent of the owner; or
- When you purchase produce for a commercial feeding operation that feeds more than 2500 head at any one time that are not wholly owned by the feeder.
- Q: What is required to become a Licensed Produce Dealer?
A:
- A completed license application.
- $275.00 application fee.
- A surety bond or irrevocable letter of credit in the amount determined by the Department based on your annual produce purchases. Minimum $5,000 and maximum $200,000.
You may be exempt from the required bond or irrevocable letter of credit (but not the required license) if you pay in cash at the time you take possession of the produce. Cash is U.S. currency, certified check, cashier's check, or postal or Western Union money order. You must fill out and sign a Cash Buyer's Affidavit, which is included in your application each year, to receive this exemption.
You may substitute a USDA Packers and Stockyards Administration bond for the required state bond.
- Q: What are the penalties for not licensing?
A:
- Acting as a dealer without having a license is a Class 6 Felony.
- Civil fines of up to $1000 per day may be issued for violations of the Act.
- Cease and Desist Orders may be issued to individuals or companies violating the Act.
- Court injunctions may be imposed for violations of the Act.
- Q: Who is protected by the dealer license?
A: Colorado owners, producers, and/or dealers who sell produce.
- Q: What do I need if I am an agent for a licensed dealer?
A:
- You will need an agent's license.
- Application for the agent's license must be endorsed by the licensed dealer and sent with the $25.00 fee to the Department.
- An agent's license will expire when the dealer's license expires.
- Q: When is a small-volume dealer license an option?
A: If you meet all of the following:
- Purchase less than $20,000 worth of hay a year;
- Have no single purchase transaction over $2,500;
- Have a fixed or established place of business in Colorado;
- Do not purchase produce for commercial feeding;
- Do not broker, act as an agent, or buy and/or sell livestock on commission.
If you feel you qualify as a Small Volume Dealer, contact the Department for an application. The application fee is $25.00 and no bond is required. You will have to maintain certain records as required by the Department.
- Q: Does the dealer license cover purchases of other types of farm products?
A: Yes, except for grains and dry edible beans, which require a separate license.
- Q: What if I have questions?
A: Email or call the Farm Products Program at 303-869-9095.
