Colorado Agricultural Dealer, Transporter, Warehouse Bond

A Colorado Agricultural Dealer, Transporter, Warehouse Bond is a type of surety bond required by the Colorado Department of Agriculture (CDA).  The bond amount depends on the type of license you’re applying for:

• Commodity handlers: 2% of annual Colorado commodity purchases with a minimum of $10,000 and a maximum of $1,000,000.
• All Farm Product Dealers (except Produce Dealers): 2% of annual Colorado purchases with a $5,000 minimum and a $200,000 maximum.
• Produce Dealers: 2% of annual Colorado purchases with a $3,000 minimum. Those with storage facilities also need to meet the $10,000 minimum and $200,000 maximum.

The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Colorado Agricultural Dealer, Transporter, Warehouse Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Colorado Agricultural Dealer, Transporter, Warehouse Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who needs to be Licensed and how to obtain it.

A Colorado Agricultural Dealer, Transporter, Warehouse Bond is required for any business involved in buying and selling or storing farm products in Colorado. Here’s a breakdown of who typically needs this bond:

• Farm Products Dealers: This applies to businesses that buy farm products for resale or processing. There are different license categories depending on purchase volume and payment methods. All Farm Products Dealers (except Produce Dealers) need the bond.
• Commodity Handlers: This category applies to businesses specifically dealing in commodities like grains, livestock, or any other agricultural product designated by the state.

In short, if your business in Colorado deals with buying, selling, or storing agricultural products, you’ll likely need this bond to obtain the proper license.

Here’s a breakdown on how to obtain a Colorado Agricultural Dealer, Transporter, Warehouse license:

1. Determine your license type:
   • There are three main categories:
     • Small volume dealer: For annual purchases under $20,000 with no single purchase exceeding $2,500.
     • Farm Products Dealer with Cash Buyer Declaration: For businesses using only cash, cashier’s checks, or money orders for purchases.
     • Farm Products Dealer: Requires a surety bond (the Colorado Agricultural Dealer, Transporter, Warehouse Bond) based on anticipated annual purchases.

2. Obtain the Surety Bond:
   • The bond amount varies depending on your license type (see info above).

3. Gather required documents:
   • The specific documents needed will vary based on your chosen license type. Generally, you’ll need:
     • Completed application form for your chosen license type
     • Farm Products Citizenship Status Affidavit
     • License fee (amounts vary depending on license type)
     • Colorado Agricultural Dealer, Transporter, Warehouse Bond (if required)

4. Submit your application:
   • You can find application forms and submission instructions on the Colorado Department of Agriculture website: https://www.ag.state.co.us/eLicense/SecurityLogin.aspx

Additional Tips:

• The Colorado Department of Agriculture website offers a licensing guide that provides more details on the process: https://www.ag.state.co.us/eLicense/SecurityLogin.aspx
• Consider contacting the Colorado Department of Agriculture with any questions you may have about the licensing process or specific requirements: https://ag.colorado.gov/

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.