New York State Agriculture Commissioner Nathan L. Rudgers recently
urged producers not to sell to unlicensed farm products dealers and to
promptly report to the department any dealer who does not pay for farm
products. This reminder reinforces the provisions contained in Article
20 of the New York State Agriculture and Markets Law, more commonly
known as the Agricultural Producers Security Law.
Dealers’ licenses expire April 30 of each year and must be renewed
for the license year beginning May 1. The State Department of
Agriculture and Markets maintains a current list of licensed dealers
operating in the state on the department’s website at www.agmkt.state.ny.us/programs/apsf.html and will provide a hard copy upon request.
“The Agricultural Producers Security Law has been effective in
helping our farmers receive payment for the products they produce,”
Rudgers said. “New York has a law that affords certain financial
protections to our producers and I encourage all of our producers to
become familiar with the details of the law and to make sure they are
selling their products to a licensed dealer. In the event of
nonpayment, it is important that producers notify the department
immediately in order to preserve their rights under this valuable and
effective law.”
Article 20 of the New York State Agriculture and Markets Law
provides financial protection for farmers against nonpayment for their
products sold to licensed dealers. Three requirements of the law are
necessary to follow in order to preserve a producer’s eligibility for
the financial protections available under the Agricultural Producers
Security Law. The requirements are:
1. Sell only to licensed dealers. Only sales to licensed dealers are
covered under Article 20. The dealer must be licensed at the time of
the transaction.
2. The sale of farm products for which a claim is made must have
occurred within 120 days after the earliest unpaid transaction between
the producer and the dealer that remains unpaid as of the date the
claim is filed, irrespective of whether that transaction is included in
the claim.
3. Claims of nonpayment must be filed with the department no later
than 365 days after the sale and delivery of the farm products. In the
event the department has issued a notice to file claims, they must be
submitted by the date specified in the published notice without regard
to the 365-day time frame.
A producer can also take advantage of Article 20’s new trust
provision, a legal mechanism that holds a dealer responsible for the
full amount owed to a producer. The Article 20 Trust is established
upon delivery of the producer’s farm products to a dealer and ends once
the amount due is fully paid. The trust assets are the farm products
and the proceeds from the sale of those farm products. To take
advantage of the Article 20 Trust, a producer must provide a written
notice to the dealer within 30 days from the date when payment is due
informing the dealer of use and content of the trust. The written
notice should provide details of the transaction, including the
dealer’s name, transaction date, product sold, quantity, price per
unit, amount owed and the date payment is due. As a practical matter, a
producer may wish to provide written notice to a dealer on the invoice
itself.
The department recommends that producers consult with their attorney
concerning matters involving preservation of their benefit or to
enforce the trust.
For up-to-date information about the law, a copy of the brochure or
a list of licensed dealers, please visit the department’s website at www.agmkt.state.ny.us/programs/apsf.html or call the department at (800) 554-4501 or directly at (518) 457-1954.
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