The Packers and Stockyards Act Surety Bond is a type of surety bond required via the Packers and Stockyards Act of 1921 (PSA).
The law was amended in 1976 to require meat packers with annual livestock purchases of over $500,000 to be bonded. The PSA applies to persons or entities in the business of marketing livestock, meat, and poultry in interstate or foreign commerce. This includes packers, swine contractors, stockyard owners, market agencies, dealers, and live poultry dealers.
The Act contains provisions banning price discrimination, the manipulation of prices, weight manipulation of livestock or carcasses, manipulation of carcass grades, commercial bribery, and misrepresentation of source, condition, or quality of livestock, in addition to other unfair and deceptive practices. Violation of the act can lead to a bond claim.
What is the bond amount?
The minimum bond amount is $10,000. The amount of the Packers and Stockyards Act Surety Bond is typically based on the dollar value of business done in two business days. The bonds are determined from an annual livestock report that is done through self-reporting required by the regulations and submitted to the Central Reporting Unit of the Grain Inspection, Packers and Stockyards Administration.
How much does the Packers and Stockyards Act Surety Bond cost?
The cost of the Surety Bond varies depending on the size of the bond and the credit of the applicant.
You can obtain a free, no obligation quote from Surety1 by completing our easy to use, online application. Surety1 has an A+ rating from the Better Business Bureau. In 2019, Surety1 joined AssuredPartners, one of the nation’s a top 12 insurance agencies.
Surety1 only represents “A” rated carriers that are listed on the Department of the Treasury’s Listing of Approved Sureties.
After you complete the application an agent will either provide you with a firm quote or ask for more information that may be required by the underwriting company. If you want to purchase the Packers and Stockyards Act Surety Bond, we accept all major credit cards.
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