North Dakota Roving Grain Buyer or Facility Based Grain Buyer Surety Bonds

North Dakota state law requires that a Roving Grain Buyer or a Facility Based Grain Buyer be licensed and have a surety bond. The North Dakota Public Service Commission encourages farmers to only sell grain to buyers that are licensed and bonded.

Surety Bond and License Requirements:

1. Applicants will need to complete the application and pay the license fee. In addition to the application, include a copy of the scale ticket that will be used, and if applicable, a copy of the credit-sale contract will need to be included. Applicants that are a partnership will need to include a copy of the agreement. Facility based grain buyers will also need to provide a copy of their Certificate of Insurance on Grain.
2. A Facility-Based Grain Buyer will need to obtain a surety bond. The bond guarantees faithful performance of all duties. The bond amount ranges from $50,000 to $1,500,000 depending on the total annual grain purchase volume. A minimum $50,000 surety bond is required for the first year and there-after, the surety bond amount will be based on the volume of bushels purchased.
3. A Roving Grain Buyer's Bond guarantees compliance with the provisions of law and the rules of the Commission applicable to the business of a roving grain buyer. The surety bond amount ranges from $50,000 to $2,000,000 depending on total annual grain purchase volume. A minimum $50,000 surety bond is required for the first year, and there-after, the surety bond amount will be based on the volume of bushels purchased.

How Much Will This Bond Cost?

The premium that you pay for a North Dakota Roving Grain Buyer or a Facility Based Grain Buyer Surety Bond will depend on credit and the bond amount needed. Our rates start at 1% of the bond amount with good credit. Bond amounts over $50,000 will require personal and/or business financial statements. Contact our Surety Bond Specialists for a free quote.

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