The Colorado Agricultural Dealer, Transporter, Warehouse Bond is required by the State of Colorado, commissioner of Agriculture. Surety1 can write this bond for you!
What are the Requirements to be a Colorado Agricultural Dealer, Transporter, or Warehouse Owner?
All those who would like to buy farm products for the purpose of reselling or processing them will need to be licensed. There are three types of licenses, namely
- Small volume dealer – there should be no single purchase above $2,500 and their annual purchase should not exceed $20,000.
Requirements: a filled out Small Volume Dealer Application Form, a Farm Products Citizenship Status Affidavit, and a license fee of $25.00
- Farm Products Dealer with Cash Buyer Declaration – for those who will purchase by cash, cashiers check or money order and will not use company check or personal check.
Requirements: a filled out Farm Products Citizenship Status Affidavit, a Dealer Application with Cash Buyer Affidavit, and a license fee of $75.00.
- Farm Products Dealer – before passing the Dealer License Application, and the $275 license fee, you must first obtain a surety bond in order to cover 2% of the annual purchases.
What is the amount for the surety bond?
The amount will depend on the type of license you are applying for. Look below to see the regulations for the bond amount.
- 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 for Produce Dealers – 2% of annual Colorado purchases with $5,000 minimum and $200,000 minimum.
- Produce Dealers– 2% of annual Colorado purchases with $3,000 minimum. Those with storage facilities must give at least $10,000 minimum and $200,000 minimum.
Where can I get a Colorado Agricultural Dealer, Transporter, Warehouse Bond?
Surety Solutions Insurance Services Inc. (Surety1) can easily get you the bond that you need. Simply fill out our online application form and wait for one of our surety experts to contact you with a firm quote. Once you pay and sign some paperwork, we will send you the bond through the mail.
Surety1 has been in the business since 2003 and we are rated A+ by the Better Business Bureau.