Grain Dealer Bond

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Bond Penalty: Varies by state and federal code

A grain dealer is generally defined as a person or entity that buys, solicits for sale or resale, processes for sale or resale, agrees to store or exchange grain, or transfers grain. Except for very limited exceptions such as a producer or collective of producers that "purchase" grain solely for use on the producer's(s) farm(s), an operator or ware-houser must file a grain dealer bond. Currently the federal government, North Dakota, Minnesota, Alabama, Arkansas, Georgia, Iowa, Michigan, Mississippi, Washington, Louisiana, Maryland, Missouri, North Carolina, Virginia, Wyoming, Oregon, Texas, Kentucky, South Dakota and Kansas require licensees to post a public warehouse and/or grain dealer bond.

The obligation is a license compliance guarantee however given the fiduciary duties of a dealer, the surety bond can also be a financial guarantee. State grain dealer laws obligate operator compliance with licensing protocols AND the dealer's fulfillment of his or her obligations to parties with whom the dealer contracts to sell, trade and warehouses product. Most grain dealer bond forms contain language that ensures prompt payment and satisfaction of all lawful grain producer claims for "product delivered".











North Carolina





Applying for a grain dealer bond should be accomplished through a surety underwriter with unique knowledge and experience with the agricultural sector. National surety bond leader, Surety One, Inc. offers both surety and fidelity bonds needed by grain operators in every state where they are required. Questions about a grain dealer bond? Call us at (800) 373-2804, email us at or click here for live chat.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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