Missouri Public Grain Dealer Bond Guide
In Missouri, all public grain dealers need a surety bond for state licensing.
Bond Overview
- Purpose: To ensure grain dealers uphold state regulations and client contracts
- Who Needs It: All public grain dealers in Missouri
- Regulating Body: The Director of the Missouri Department of Agriculture
- Required Coverage: $50,000–$600,000, based on annual grain purchases
- Premium Rate: Credit-based, typically 1–2%
Keep scrolling to learn more about the bonding process.
What Is a Missouri Public Grain Dealer Bond?
A Missouri public grain dealer bond ensures dealers comply with the Missouri Grain Dealer Law and fulfill buyer contracts.
The Missouri Department of Agriculture (MDA) requires the bond amount to be the greater of $50,000 or 2% of your annual Missouri grain purchases.
How Much Do Public Grain Dealer Bonds Cost in Missouri?
Missouri public grain dealer bond premiums are credit-based and typically cost 1–2% of the bond amount. For example, qualified applicants often pay just $500 for $50,000 coverage.
Select your bond amount below for a free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Missouri Public Grain Dealer Bond Work?
A Missouri public grain dealer bond is a legal contract between three parties:
- Principal: The grain dealer purchasing the bond
- Obligee: The Director of the Missouri Department of Agriculture requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of the Missouri Grain Dealer Law.
If you break the bond terms, harmed parties can file claims. 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 Public Grain Dealer Bond?
In Missouri, most dealers who buy or transport grain need a surety bond for licensing. There are various classifications of grain dealer licenses, each requiring surety bond coverage.
However, some types of dealers are exempt under MO Grain Dealer Law Section 276.404(17). You must contact the MDA to request an exemption form.
How Do I Get a Public Grain Dealer Bond in Missouri?
SuretyBonds.com provides the fastest and easiest way to get a public grain dealer bond. Just follow these simple steps:
- Apply Online: Fill out the quote request form on this page
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Download your official bond form directly from your email
Upon receipt, sign and file the bond documentation with the MDA.
How Fast Can I Get My Bond?
SuretyBonds.com issues public grain dealer bonds faster than any other provider. We process most 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 may increase your premium rate. Apply now to receive your free quote.
How Do I Renew My Public Grain Dealer Bond?
Missouri public grain dealer bonds expire annually.
When you work SuretyBonds.com, we’ll send you reminders and a renewal invoice. All you need to do is pay the premium to maintain coverage.
How to Become a Public Grain Dealer in Missouri
The Department of Agriculture licenses all public grain dealers in Missouri.
To apply for a license, first determine your dealer classification:
- Class I: Offers minimum price contracts or credit sales contracts; may also be licensed as a warehouseman
- Class II: Also licensed as a warehouseman, but cannot issue minimum price contracts or credit sales contracts
- Class III: Uses physical facilities to hold bulk grain; not licensed as a warehouseman; cannot issue minimum price contracts or credit sales contracts
- Class IV: Primarily transports grain; cannot issue minimum price contracts or credit sales contracts
- Class V: Can only sell their own grain and may not buy from other producers
- Class VI: All other dealers who don’t fall under Classes I-V; cannot issue minimum price contracts or credit sales contracts
All classes must maintain a minimum net worth of 5% of their annual Missouri grain purchases. Class I needs at least $50,000 in net worth.
To apply, complete the grain dealer license application and attach proof of the required surety bond.
Once approved, you must renew your license annually at least 30 days before expiration. Your license expires 5 months after your fiscal year ends.
