What Is an Iowa Timber Buyer Bond?

This bond ensures that timber buyers pay growers in full for purchased or cut timber. It also holds buyers accountable for complying with ethical timber practices. 

The Department of Natural Resources requires this type of license and permit bond to operate in Iowa. 

How Much Bond Coverage Do I Need?

When applying for a timber buyer license, you will need to report your bond amount on the Application for Bond Approval. 

Calculate your bond amount by taking 10% of the sum of the following factors from the prior year: 

• Amount paid to timber growers
• Amount due or delinquent to timber growers
• Market value of the grower's share harvested 

Your bond amount will be a minimum of $25,000 and a maximum of $50,000.

If you’re unable to add up your December income by the January 1 application deadline, you can report income from a different 12-month period. 

How Much Do Timber Buyer Bonds Cost in Iowa?

Iowa timber buyer bond premiums typically cost 1–3% of the total bond amount based on credit score. For example, applicants with excellent credit scores often pay just $250 for $25,000 coverage. 

Exact rates vary depending on the bond amount and financial qualifications. You may also be eligible for a multi-year term discount to save up to 25%. 

Apply below to get your free personalized quote.

How Does an Iowa Timber Buyer Bond Work?

An Iowa timber buyer bond is a legal contract between three parties: 

1. Principal: The timber buyer purchasing the bond
2. Obligee: The Iowa Department of Natural Resources requiring the bond
3. Surety: The provider issuing the bond

Under this contract, you, as the principal, promise to uphold Iowa Code 456A.36.

If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.

Who Needs a Timber Buyer Bond? 

In Iowa, any individual who buys bulk timber from growers to saw into lumber for resale needs a surety bond. 

You can submit a certificate of deposit instead of a bond. However, a surety bond is often the most affordable option, requiring only an upfront premium and no collateral.

How Do I Get a Timber Buyer Bond in Iowa?

SuretyBonds.com provides the fastest and easiest way to get a timber buyer bond. Just follow these simple steps:

1. Apply Online: Select your coverage amount and enter your information to receive a personalized quote
2. Pay Invoice: Complete your purchase online or over the phone
3. Receive Bond: Receive your official bond form via email 

Upon receipt, sign and file the bond documentation with the DNR.

How Fast Can I Get My Bond? 

SuretyBonds.com issues timber buyer bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote.

Can I Get Bonded With Bad Credit?

Yes, you may still be able to get bonded with bad credit. However, poor credit will typically increase your premium rate. 

Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.

How Do I Renew My Timber Buyer Bond?

Iowa timber buyer bonds expire annually unless you purchase a multi-year term. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires. 

All you need to do is pay the renewal premium — we’ll do the rest!