H-2A Farm Labor Contractor Bond

For seasonal staffing needs (harvests, seeding, etc.), many farms rely on Farm Labor Contractors. These individuals or companies run crews of farm laborers, often including nonimmigrant agricultural workers. However, to legally employ non-US farm workers in most states, the hiring contractor must be both licensed and bonded.

• License — H-2A Temporary Agriculture Program certification. Issued by the US Department of Labor under the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).
•  Surety Bond — H-2A Farm Labor Contractor Bond. Also sometimes referred to as a US Department of Labor Surety Bond or H-2ALC Surety Bond.

Note that the H-2A program is not available in all states but is accessible in most of them.

A Farm Labor Contractor Bond is a financial guarantee that the Farm Labor Contractor will conduct business ethically and lawfully. This includes ensuring all hired laborers’ benefits and wages are paid on time. This bond is a legal requirement that is in place to protect workers, farms, and the state.

In the event that a Farm Labor Contractor acts unlawfully, anyone affected can make a claim against their bond. For example, suppose a worker hasn’t been paid for their services or has been subject to unsafe working conditions. In that case, they can seek reimbursement by making a bond claim.

This surety bond is like a line of credit that you must have to work as an H-2A Program Farm Labor Contractor but hope to never use.

Who Needs a Farm Labor Contractor Bond?

Most Farm Labor Contractors applying to or in the H-2A Temporary Agriculture Program must have a Farm Labor Contractor Bond. This specifically includes employers who hire any temporary foreign worker to perform agricultural labor or services of a temporary or seasonal nature.

Note that not all US states participate in this program. Places that commonly do include California, Florida, Texas, North Carolina, Georgia, Michigan, Washington, Oregon, New York, and South Carolina

Laws and regulations around this program and its surety bond amounts are consistently changing, so we suggest staying up to date using the US Department of Labor and local regulatory agencies. For more information, also see 29 C.F.R Part 501.

Farm Labor Contractor Bonds act as a financial guarantee that a Farm Contractor will conduct business ethically and lawfully. If they fail to do so, the bond ensures they pay for damages.

Every Farm Labor Contractor Bond is a contract between three parties:

1. The Principal – The Farm Labor Contractor that needs to purchase the bond.
2. The Obligee – The licensing entity requiring the principal to get bonded.
3. The Surety –The company that issues and financially backs the bond (ex. JW Surety Bonds).

A bond claim can be made against the Farm Labor Contractor for unlawful or unethical activity. This claim may be up to the full amount of the bond but may not exceed it. For example, the maximum bond claim amount on a $10,000 surety bond is $10,000.

All bond claims go through an investigation process to confirm their validity. If verified, the surety pays out the bond claim to ensure quick and timely payment. However, the Farm Labor Contractor is then on the hook to pay them back in full.

 Prerequisites for an H-2A Temporary Labor Certification include the following:

• Be an employer located in the US. You must also be in a state that participates in the program.
• Require work that is considered agricultural (planting, harvesting, raising, cultivating, etc.).
• Be able to offer full-time employment during the contract (35+ hours a week).
• Have work temporarily in nature (generally 10 months or less) and tied to a reoccurring cycle (ex. harvesting).

If you meet the above criteria, you can start the application process through the FLAG online filing system.

The cost of a Farm Labor Contractor Bond typically ranges from $100 to $5,000. Bond cost heavily depends on how many workers you have and your credit score.

1. Number of Workers – The total amount of your bond (penal sum) will usually range from $5,000 to $75,0000. This amount depends on the number of workers you employ. The more workers, the more your bond will cost. You can typically expect to pay anywhere from 1% to 10% of the penal sum.
2. Credit Score – Those with good credit can expect to pay a bond premium that equals 1% to 3% of their total bond amount. While those with lower credit will pay more. Note that business experience and financials may also factor into the bond rate you can secure.

Want to know how much your bond will cost? Get a free bond quote.

Important: It is essential to also look at your state regulations, as they may affect the bond amount you need. For example, in Oregon, the minimum amount of your bond must be $15,000 if you’re simultaneously applying for a Camp Operator Indorsement. Furthermore, a Wage and Hour Division Administrator may adjust your required bond amount.

1. Apply for Your Surety Bond

You can apply for a Farm Labor Contractor Bond by calling (888) 592-6631 or by filling out an online application.

Our online application is quick, available 24/7, and provides an instant quote. To fill out the form, you will need to know your:

•  Bond Name (Farm Labor Contractor Bond - General Business License Bond
•  Bond Amount (Varies; $5000 to $75,000)
•  Contact Information

2. Get a Free Bond Quote

Your free, no-obligation bond quote will be sent directly to the email address you provide. Generally, this email only takes a couple of minutes to arrive, but it may take longer for larger bond amounts.

We receive a phone call once every week or two regarding no quote being sent. In these instances, it is always in the customer’s junk folder. Please don’t forget to check yours.

3. Buy and Send Your Bond

Like your quote? Follow the email instructions to buy your bond online. As soon as your payment clears, we will send you an electronic copy of the bond.

Most states will accept this electronic bond copy. However, some may require the original bond. This original can be sent to you by mail upon request.

A Farm Labor Contractor Bond must remain active for the term of the approved work order, plus 3 additional years (previously 2 years). This typically requires it to be active for approximately 4 years.

• Bond Renewal: Contact your surety company. They should send you a renewal notice with instructions at least 30 days before your bond expires.
• Bond Cancellation: Any licensing application filed on or after November 14, 2022 has a bond that cannot be canceled per the 2022 Final Rule. They must let the bond run its full term. Those who filed before that date and are subject to the 2010 Final Rule may cancel by contacting their surety.

Can you get this Surety Bond with bad credit?

Yes, you can often get this surety bond with bad credit. At JW Surety Bonds, we have a bad credit bonding program specifically for these cases. While other surety companies flat-out refuse bad credit applicants, we pride ourselves on getting them the bond they need at the best possible price for their credit score.

What is the validity period of a farm labor contractor bond?

Per the 2022 Final Rule, Farm Labor Contractor Bonds must be valid for the full contracting period plus an additional 3 years. This usually equates to a total of 4 years.

What happens if you don’t renew the bond?

 If you fail to renew your bond during the 4 years it needs to be valid, you can face charges and fines. Your surety company should contact you 30 days before your bond renewal. However, ultimately, it is up to you to ensure you maintain an active bond.

Can bond amounts change over time?

Yes, bond amounts can change over time. The 2022 Final Rule states explicitly that Farm Labor Contractor Bond amounts can change annually. If you are unsure about your required bond amount or have any other bonding questions, don’t hesitate to contact our surety experts.

29 CFR Part 501 -- Enforcement of Contractual Obligations for Temporary Agricultural Workers Admitted Under Section 218 of the Immigration and Nationality Act. (n.d.). In www.ecfr.gov. Retrieved March 12, 2025, from
https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-501#part-501

2022 Final Rule. (n.d.). Retrieved March 12, 2025, from
https://www.dol.gov/sites/dolgov/files/ETA/oflc/pdfs/2022%20H-2A%20FR_FAQs%20Round%201_Implementation.pdf

H-2A Temporary Agricultural Program. (n.d.). In DOL. Retrieved March 12, 2025, from
https://www.dol.gov/agencies/eta/foreign-labor/programs/h-2a

Legislature, O. R. (n.d.). ORS 658.735. In Bond required. Retrieved March 12, 2025, from
https://oregon.public.law/statutes/ors_658.735

Migrant and Seasonal Agricultural Worker Protection Act (MSPA). (n.d.). In DOL. Retrieved March 12, 2025, from
https://www.dol.gov/agencies/whd/agriculture/mspa

What Is a Surety Bond? (n.d.). In JW Surety Bonds. Retrieved March 12, 2025, from
https://www.jwsuretybonds.com/edu/what-is-a-surety-bond