Vermont Milk Handler Bond

VermontVermont State introduced a new bill concerning milk handlers. The new bill is named SB 89 and it modified the quantity of the surety bond or letter of credit required under present law for milk handlers. The previous law stated that the surety bond had to be in a quantity equivalent to 50% of the maximum amount due for all milk producers in the State who sell milk to the handler for a 41-day phase during the prior 12 months. SB 89 now states that this quantity pertains to milk handlers managing milk from all species other than cattle. For milk originating from cattle, the surety bond must be for 100% of the amounts as calculated under present legislation. The surety bond also protects milk cooperatives including Vermont producers, who gain from the surety bond’s protection under present law. The new law also creates new exemptions from the surety bond requirement for handlers that pay milk cooperatives in advance or at the time of delivery for the milk; also for handlers that pay milk coopertives before or at the time of delivery for the milk and also for handlers who purchase less than 150,000 pounds of milk monthly from a milk cooperative.


Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.

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