Livestock Market Agencies, Dealers and Packers Bond
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What Is a Livestock Market Agencies, Dealers and Packers Bond?
A livestock market agencies, dealers and packers bond is a type of surety bond that ensures meat packers follow federal regulations. The U.S. Department of Agriculture (USDA) requires this bond to maintain ethical business practices within the livestock industry, such as:
- Ensuring timely payment for livestock
- Preventing antitrust violations
- Mitigating unfair and fraudulent practices
This bond is also referred to as a livestock packers and stockyards bond.
Who Needs a Livestock Packers and Stockyards Bond?
The Packers and Stockyards Act promotes fair trade practices and aims to protect farmers, ranchers, market agencies, distributors and dealers of livestock, meat and poultry from damages.
Under this act, the following five entities must file a surety bond with the USDA:
- Market agencies selling livestock on commission
- Market agencies buying livestock on commission
- Livestock dealers
- Market agencies operating as clearing agencies
- Meat packers with over $500,000 in average annual livestock purchases
As an alternative, principals may use a trust agreement to meet the USDA requirement. However, surety bonds are the most common financial instrument.
How Much Do Livestock Market Agencies, Dealers and Packers Bonds Cost?
Livestock market bond prices start at just 1% of the bond amount, which means you may pay as low as $100 for a $10,000 bond. Get your exact quote with no added fees by applying now.
How Do I Get a Livestock Market Agencies, Dealers and Packers Bond?
SuretyBonds.com provides the fastest and easiest bonding process for livestock dealers, packers and market agencies:
- Step 1: Apply online in minutes.
- Step 2: Pay for your bond quote.
- Step 3: Receive and submit your official bond form to your regional PSD office.
- Step 4: Wait for written approval from the PSD before conducting business.
Some states require you to name a state agency or official as trustee. See the USDA’s complete list of states requiring trustees for details. If no trustee is named on a surety bond, you may submit a digital copy of the bond form rather than the original.
How Fast Can I Get a Livestock Market Agencies, Dealers and Packers Bond?
You can purchase a livestock packers and stockyards bond as quickly as same-day with SuretyBonds.com. We also offer next-day shipping if you’re in a rush to receive your physical bond documentation. Apply now to get started!
What Are the Bond Requirements for Livestock Dealers, Packers and Stockyards?
The minimum bond coverage is $10,000 for USDA-registered livestock dealers and packers. However, you may need a higher bond amount depending on your state as well as the size and type of your operation.
Here’s how bond amounts are typically calculated:
- Market agencies selling livestock on commission: The value of livestock sold in the previous fiscal year divided by the number of days you sold livestock in the past year
- Clearing and market agencies buying livestock on commission: The average value of livestock purchased over two business days
These calculations may vary for new companies. Contact your local Packers and Stockyards Division (PSD) office to confirm your exact bond requirement.
How to Register With the USDA Under the Packers and Stockyards Act?
If you’re a market agency or dealer, the PSD will not process your registration until you file an active surety bond. To register your company with the USDA:
- File your surety bond
- Submit the Application for Registration form to your regional PSD office
View more detailed application instructions here.
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