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6 V.S.A. Chapter 157 details the bonding requirements for those purchasing milk directly from a farm, farmer owned cooperative, or a marketing service owned by cooperative(s). Bonds must be posted as Surety Bonds or as irrevocable Letters of Credit and will represent the maximum amount due for all purchases in a 41 day period on milk from cattle, and for 50% of the milk purchased from farms milking sheep, goats or water buffalo.

  • There are a few exceptions. Cooperatives do not have to provide bonds for milk purchased from their members or from other cooperatives. Any company that is paying for the milk they purchase at the time of, or prior to, delivery is exempt as is anyone buying less than 150,000 pounds in a single month from a cooperative or marketing service owned by a cooperative.

The bonds must be provided before a Vermont Milk Handler License can be issued and must be renewed 60 days prior to the expiration date of the Vermont Milk Handler License.


COD Sample Letter
Surety Bond Sample
Letter of Credit Sample