The Minnesota Grain Buyer’s Bond is required by the State of Minnesota. The bond states that the bondholder shall pay to the owner on demand the purchase price of grain sold to them, and shall fully an faithfully perform the duties imposed upon said license. There are two types of license you can get.
- First is the Grain Buyer License, which is required for anyone buying grain in Minnesota with the purpose of reselling the grain or products made from the grain.
- A Grain Buy & Store License meanwhile, is required to operate a grain warehouse that stores grain for compensation.
A grain buyer’s license license must be purchased for each location. Only one storage license is required if there is one owner and operator for multiple storage facilities within the same city.
How do I apply for a license to become a grain dealer?
Submit a completed a Grain Buyer Application or Buy & Store License Application.
- Pay the appropriate fees.
- Submit a voided Warehouse Receipt or Scale Ticket
- For those storing grain, you must also file a tariff or schedule of all charges relating to the storage of grain. Aside from that, you must provide evidence of insurance for any loss of stored grain due to fire, windstorm, and extended coverage risks.
- Submit the required surety bond. For the grain buyer license, the bonds range from $10,000 to $150,000 (based on the dollar amount of the buyer’s annual grain purchases), meanwhile, the buy & store license bonds range from $10,000 to $ 150,000.
What size Bond do I need?
The bond amount varies based on the gross annual purchases. First time licensees must file a $50,000 Minnesota Grain Buyer’s Bond with the commissioner.
- $10,000 for grain buyers whose gross annual purchases are $100,000 or less;
- $20,000 for grain buyers whose gross annual purchases are more than $100,000 but not more than $750,000;
- $30,000 for grain buyers whose gross annual purchases are more than $750,000 but not more than $1,500,000;
- $40,000 for grain buyers whose gross annual purchases are more than $1,500,000 but not more than $3,000,000;
- $50,000 for grain buyers whose gross annual purchases are more than $3,000,000 but not more than $6,000,000;
- $70,000 for grain buyers whose gross annual purchases are more than $6,000,000 but not more than $12,000,000;
- $125,000 for grain buyers whose gross annual purchases are more than $12,000,000 but not more than $24,000,000; and
- $150,000 for grain buyers whose gross annual purchases exceed $24,000,000.
Where do I get a Minnesota Grain Buyer’s Bond?
Surety Solutions Insurance Services, Inc. (surety1) offers an easy to navigate, online application. After submitting the completed application form, one of our surety professionals with a no-obligation quote for your bond. If you decide to move forward with us, just pay the quoted premium, sign the necessary paperwork and you will soon receive your bond through USPS Priority Mail. If you want to get it faster, you can choose overnight delivery for an an additional fee. Surety1 has been providing Minnesota surety bonds since 2003 and the company maintains an A+ rating from the Better Business Bureau.
Surety1 is licensed.