New York State Agriculture Commissioner Patrick Hooker today reminded producers of farm products to only sell to licensed farm product dealers and to promptly report to the Department any dealer who does not pay for farm products. This reminder highlights the provisions contained in Article 20 of the New York State Agriculture and Markets Law, more commonly known as the Agricultural Producers Security Law.

"The Agricultural Producers Security Law has been effective in helping New York farmers receive payment for the products they produce," the Commissioner said. "I encourage all of our producers to become familiar with the details of the law and to make sure they are selling their products only to licensed dealers. In the event of nonpayment, it is important that producers notify the Department immediately in order to preserve their rights under this valuable law."

Farm product dealers are required to be licensed with the Department of Agriculture and Markets. Dealers' licenses expire on 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 on the Department's website at www.agmkt.state.ny.us/programs/apsf.html and will provide a hard copy upon request.

A producer can also take advantage of Article 20's 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 60 days from the date when payment is due informing the dealer that the producer is electing the trust benefit. The written notice must 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.

For up-to-date information about the law, a copy of the brochure or a list of licensed dealers, please call the Department at 1-800-554-450 or visit their website at www.agmkt.state.ny.us/programs/apsf.html.