On May 16, 2020 Governor Walz signed legislation removing the requirement of licensure and bonding of Wholesale Produce Dealers. Beginning July 1, 2020 licenses and bonds will no longer be required to purchase produce in wholesale lots for resale, no action with our office is needed. If you previously held a Wholesale Produce Dealers license and have questions about cancelling your bond or irrevocable letter of credit, please contact us. 

The change to Minnesota Statute Chapter 27 only impacts the licensure and bonding of entities, the law continues to protect sellers of produce through the dealer trust, which prioritizes seller’s claims in the event of bankruptcy or insolvency. If you have questions or need clarification as to how this change impacts your business, please do not hesitate contacting us.

Wholesale Produce Dealers Trust

The Wholesale Produce Dealers Act creates a trust in the dealer's produce, products of produce, accounts receivable and proceeds. This is another way that a seller can seek reimbursement from the buyer. This trust operates like a lien against the dealer's property and takes priority over security interests others may have. The seller must file a claim with the following entities:

  • Dealer who owes the money
  • Wholesale Produce Dealers Program, Minnesota Department of Agriculture
  • Minnesota Secretary of State

The trust claim must be filed within 40 days after the due date for payment. If there is no due date, produce must be paid for within 10 days. In that case, a claim must be filed within 50 days after the date of the transaction. This type of claim is resolved in court.