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Tennessee Incidental Grain Dealer Surety Bond

A dealer holds grain in his hands

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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.

Optional Surety Bond and License Requirements:

  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)
  • Instead 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.
  • How Much Will a Tennessee Incidental Grain Dealer Bond Cost?

    The premium that you pay for a Tennessee Incidental Grain Dealer Surety Bond is dependent on credit

    Did You Know?

    A grain dealer license is required if grain purchases are more than $100,000 annually.

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

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