As of July, 2019, licensing and regulation of roving grain buyers was transferred to the Department of Agriculture (Advisory). All grain elevators, facility-based grain buyers and roving grain buyers must be licensed and offer appropriate financial assurance against insolvency. A North Dakota roving grain buyer's bond is required from two classes of grain intermediary:
Per the Departments presentation on permitting of grain intermediaries, the grain buyer's bond must be continuous in form and must be filed before a license is granted. The surety bond protects holders of outstanding receipts and sellers of grain, and covers costs incurred by the Commissioner of Agriculture in the administration of an intermediary's insolvency. The Commissioner fixes the bond penalty by Rule but and may require an increase in the amount according to his discretion. Only one bond may be given for any line of elevators, mills, warehouses, etc., or for any series of facilities operated by a facility-based grain buyer. Likewise only one bond can be filed for a roving grain buyer. The current formulas for determining the initial grain buyer and roving grain buyer's bond are as follows:
The Commission or Agriculture is reviewing surety bond requirements and has proposed thresholds based on the dollar value of grain purchases, three year rolling averages calculated at renewal and a grain buyer bond calculation based on fifteen percent (15%) rounded to the nearest $10,000. Visit the Commissioner's page for updates. The following links are will offer guidance on trade and compliance.
North Dakota surety bond leader, Surety One, Inc., offers knowledge and experience in bond underwriting within the agricultural space. We offer both surety and fidelity bonds needed by grain operators, warehousers and broker/intermediaries in every state where they are required. Questions about a North Dakota roving grain buyer's bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat.
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