Montana Commodity Dealer/Warehouse Bond Guide
If you’re applying for an agricultural commodity warehouser or commodity dealer license in Montana, you’ll need a surety bond.
Bond Overview
- Purpose: To ensure compliance with commodity buying and warehousing laws
- Who Needs It: All agricultural commodity dealers and warehouse operators in Montana
- Regulating Body: The Montana Department of Agriculture
- Required Coverage: $1,000–$280,000, based on business size
- Premium Rate: Credit-based, typically 1–10% of the bond amount
Learn all about the bond requirements and process in this guide.
What Is a Montana Commodity Dealer/Warehouse Bond?
A Montana commodity dealer/warehouse bond guarantees businesses involved with purchasing or storing agricultural products uphold laws and regulations.
The Montana Department of Agriculture requires this bond as financial protection for producers if a dealer or warehouse operator doesn’t make payments or improperly handles commodities.
How Much Do Commodity Dealer/Warehouse Bonds Cost in Montana?
Your Montana commodity bond will cost a small percentage of the total bond coverage — typically 1–10%.
Rates vary based on the personal credit score of all applicants. For example, you could pay $200 for a $20,000 commodity dealer bond with excellent credit.
Apply for your free, personalized quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Commodity Dealer/Warehouse Bond?
The Montana Department of Agriculture requires this bond as part of the approval process for these two license types:
- Commodity Dealer: Individual or business that buys, exchanges, solicits or negotiates the sale of more than $30,000 state-grown agricultural commodities per year
- Commodity Warehouse: Elevator, mill warehouse, public warehouse, sub-terminal grain warehouse or other facility used to handle, process or ship commodities
You can submit a surety bond, certificate of deposit, or letter of credit as proof of financial security. However, a surety bond is typically the most affordable and efficient option.
How Does a Montana Commodity Dealer/Warehouse Bond Work?
As with all surety bonds, a commodity dealer/warehouse bond creates a legal contract between three parties:
- Principal: You, the commodity dealer or warehouse operator filing the bond
- Obligee: The Montana Department of Agriculture requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding Montana Code Title 80 Chapter 4.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually on June 30. We’ll begin contacting you by phone and email 90 days before the expiration date.
To renew, simply pay your renewal invoice when prompted.
