ALBANY — New York State Agriculture Commissioner Patrick Hooker on Monday warned farmers to sell only to licensed farm product dealers and to promptly report any dealer that does not pay for farm products.

“I encourage all of our farmers to become familiar with the details of the Agricultural Producers Security Law and to make sure they are selling their products to a licensed dealer,” Hooker said. “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.”

According to state officials, 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 Web site at www.agmkt.state.ny.us/programs/apsf.html and will provide a hard copy upon request.

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. This financial protection consists of security in the form of a bond or letter of credit furnished by the dealer, and supplemental financial coverage from the Agricultural Producers Security Fund, which is funded by licensed dealers.

To be eligible for the financial protections in the law, producers must sell only to licensed dealers, have no more than two unpaid transactions with the same dealer over a 120-day period and file claims of nonpayment with the department no later than 365 days after the sale and delivery of the farm products.