August 10, 2007
Administrative Judge Orders Pasco County Ag Dealer To Pay
Horticulture Grower Over $97,000
Ruling is first of its kind since License and Bond Law was revised in 2005
Florida Agriculture Commissioner Charles H. Bronson today announced that a Pasco County agricultural dealer has been ordered to pay over $97,000 to a South Florida nursery for tropical foliage products it purchased but failed to pay for. The ruling is the first against an agricultural dealer who defaulted on payment for this type of commodity since tropical foliage growers were afforded protection under the state’s License and Bond Law in 2005.
Garden World of Holiday, Inc., purchased tropical foliage from Sturon, Inc., of Miami, during 2005 and 2006 but failed to make payment for the products. Sturon filed a claim against Garden World with Bronson’s department under Florida’s License and Bond Law. An administrative law judge with the state Division of Administrative Hearings found in favor of Sturon and ordered Garden World to pay $97,443.98.
“Florida’s License and Bond Law affords protection to our state’s agricultural producers who could otherwise suffer huge financial losses if a buyer failed to live up to the terms of the purchase,” Bronson said. “Obviously, perishable commodities cannot be repossessed, and, without this law, smaller farming operations could literally be put out of business by a buyer who does not pay for shipments.”
Should Garden World fail to pay in accordance with the terms of the Administrative Order, Bronson’s department will take the money from the bond that Garden World and other agricultural dealers are required to post in order to hold a Florida Agricultural Dealer License.
The Florida License and Bond Law gives market protection to producers of perishable agricultural commodities. Since its enactment in 1941, producers have been able to conduct business with the safeguards afforded by this law, which is administered by the Florida Department of Agriculture and Consumer Services. The law was revised in 2005 to increase protections to producers and dealers. The revisions included expanding the definition of “agricultural products” to include tropical foliage.
“The changes to the law in 2005 helped make the program more ‘agriculture-friendly’ and easier to follow,” Bronson said. “Among the revisions was removing tropical foliage from the exempted list, thus extending protection to growers of these products. This Administrative Order should serve as warning to agriculture dealers that we are actively enforcing the License and Bond Law as it applies to tropical foliage as well as other covered agricultural products.”
The Bureau of Agricultural Dealer’s Licenses is responsible for the licensing of dealers in agricultural products. Any person who is engaged within the state in the business of buying, receiving, soliciting, handling, or negotiating agricultural products from or for Florida producers, or their agents, must be licensed and bonded. The Florida License and Bond Law helps assure that producers of products covered by the law receive proper accounting and payment for their products. In order to secure a license, one must file a properly completed application, pay the required license fee, and post an adequate surety bond or certificate of deposit. Any producer or producer’s agent who feels he has been damaged by a dealer’s failure to make proper accounting or payment for agricultural products may file a complaint.
For more information on the Florida License and Bond Law, visit http://www.florida-agriculture.com/BondLawUpdate/.
For more information:
Nelson Mongiovi
(850) 488-0163
mongion@doacs.state.fl.us
