Search

Bonds

An applicant who has not been licensed to buy or store grain in Minnesota in the previous licensing period must file a $100,000 MN Grain Bond. A grain bond must remain in effect for the first three years of the license. The Commissioner may also require additional bonds based on financial statements.

You may be exempt from the bond if you meet ALL THREE of the following criteria:  

• You purchase less than $1 million in grain each year, 
• you pay for all grain with cash (bills and coins), a certified check, a cashier's check, or a postal, bank, or express money order (this DOES NOT include regular checks, ACH, or wire payments), and
• you pay immediately after delivery.

If you meet all three of these criteria, please contact our office for an exemption form. Exemptions are not automatic they must be submitted to our office at application or annually at renewal.  MDA inspectors will also verify that all exemption requirements are being followed during annual inspections. 

You should be able to obtain a bond through your bank or insurance carrier.

The bond helps to reimburse the indemnity fund if payments are made to producers due to a breach of contract.

A grain buyer's license must be purchased for each location. Only one storage license is required if there is one owner and operator for multiple storage facilities within the same city.

The licensing period is July 1st - June 30th with an annual renewal. A renewal application will be mailed to you in May and it must be returned by July 1 or late fees will apply.