The State of Tennessee Department of Agriculture, Division of Consumer and Industry Services, oversees the licensing of public grain warehouses, grain dealers, commercial feed, Incidental Grain Dealer, seed dealer, agriculture liming materials and registering of commercial fertilizer distributors.
The Tennessee Code Annotated Title 43 Chapter 32 Section 101 Tennessee Commodity Dealer and Warehouse Law, defines the licensure and surety bond requirements for an incidental grain dealer.
The requirements include:
1. Complete the application and pay the applicable fee.
2. Obtain an optional minimum $1,000 surety bond or otherwise determined by the commissioner.
3. The formula to determine the surety bond amount is as follows:
Dollar amount of grain purchased from producers in last 12 months $___ x 10% = a.) ____
(Round up to the nearest $1,000, Minimum is $1,000 & maximum is $10,000)
Dollar amount of grain of payment made more than 30 days from delivery= $______x 80% =b.) ______ (Round up to the nearest $1,000)
Bond amount a. + b. =$_____ (minimum of $1,000)
4. In lieu of a bond, signage disclaimers stating there is no indemnification from the grain fund must be posted in letters no smaller than two inches. The statement must also be included on scale tickets and receipts and requires the seller's signature on each receipt or ticket.
The premium that you pay for a Tennessee Incidental Grain Dealer Surety Bond is dependent on credit
A grain dealer license is required if grain purchases are more than $100,000 annually.
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