Colorado Dealer and/or Commodity Handler Bond Guide
If you’re looking to become a farm product dealer or commodity handler in Colorado, you’ll need a surety bond. Learn all about how to get bonded in this guide.
Bond Overview
- Purpose: To protect farm product sellers from fraudulent handlers and dealers
- Who Needs It: Farm products dealers and/or commodity handler licensees
- Regulating Body: The Colorado Department of Agriculture
- Required Coverage: $10,000–$1,000,000
- Premium Rate: Credit-based, typically 1–10%
What Is a Colorado Dealer and/or Commodity Handler Bond?
A Colorado farm products dealer or commodity handler bond guarantees faithful and honest handling of farm products. The surety bond coverage guarantees payment for any fees owed to the Department of Agriculture.
How Much Do Dealer and/or Commodity Handler Bonds Cost in Colorado?
Your bond amount will equal 2% of annual purchases and transactions in the prior year, with a $10,000 minimum and $1,000,000 maximum.
Commodity handler and farm product dealers bonds typically cost 1–25% of the bond amount. Exact rates are determined based on personal credit score.
For example, an applicant with strong credit can pay as low as $100 for a $10,000 Colorado farm product or commodity bond. Apply to get your free quote today.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Dealer and/or Commodity Handler Bond Work?
A Colorado dealer or commodity handler bond binds a principal, obligee and surety in a legal agreement:
- Principal: The dealer and/or commodity handler purchasing and upholding the bond
- Obligee: The Colorado Department of Agriculture requiring the bond for licensing
- Surety: The provider issuing the bond and backing the principal
For example if the principal makes fraudulent charges, makes false statements about market conditions, uses unfair sales practices, or otherwise breaks the provisions of Article 37, harmed parties can file a bond claim to recover damages.
The surety will validate and pay claims up to the full bond amount. However, the principal must then reimburse the surety company that underwrote the bond.
Who Needs a Dealer and/or Commodity Handler Bond?
Under Title 37 of Colorado Revised Statutes, participants in the Farm Dealer Products Program and the Commodity Warehouse Program must file a surety bond. This creates financial security and liability if dealers or handlers act dishonestly.
Farm products include unprocessed products of the soil, livestock, milk, honey, and hay. Poultry, nursery stock, timber products, livestock not sold within 90 days are not included in this program.
Commodities covered under the Commodities Act include unprocessed grains, sunflower feeds, industrial hemp, and dry, edible beans.
How Do I Get a Dealer and/or Commodity Handler Bond in Colorado?
To get your dealer bond or commodity handler bond in Colorado, just submit an online quote request. We’ll follow up within one business day or less with your no-obligation invoice.
You can complete your documents and purchase online at your convenience. After checkout, we’ll digitally deliver your official bond form.
Submit your bond to the Department of Agriculture at the address listed on the bond form.
How Fast Can I Get My Bond?
You can get your Colorado farm products dealer bond as soon as same-day with SuretyBonds.com. We issue most quotes within 24 hours and offer instant digital delivery.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get your Colorado commodities handles or farm product dealer license and bond with bad credit.
We work with several markets and will shop to find the best rate for your financial credentials. Request your free quote today or learn more about our Bad Credit Bonding Program.
How Do I Renew My Dealer and/or Commodity Handler Bond?
These bonds last for one year. You must renew your bond annually to maintain license compliance.
A SuretyBonds.com representative will contact you during the renewal period. Typically, all you need to do is pay the renewal invoice to extend the bond term for another year.
