Montana commodity dealer bonds.
From $200.

A Montana commodity dealer — buying grain and other agricultural commodities from producers — must license with the Department of Agriculture and file a surety bond protecting the producers it buys from. The amount runs from a $20,000 minimum up to a $1,000,000 cap. Premiums run 1% of the bond amount.

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Required for a commodity dealer license from the Department of Agriculture under MCA Title 80, Chapter 4

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Amount is set by the department, $20,000 minimum to $1,000,000 maximum, based on your purchases

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A quick soft credit check may apply — never a hard inquiry, no impact on your score, and pricing is 1% of the bond amount

From $200minimum premium1%of bond amountSoft pullnever a hard inquiry

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How it works

Three steps to a licensed dealer.

Your commodity dealer license is waiting on this bond. Here is the whole process — no broker phone tag:

TODAY · ONLINE

Apply online

Business details, the bond amount the department set, and an effective date — plus a one-time consent to a soft credit pull. That is the application.

WITHIN 48 HOURS

Reviewed & approved

Most clear quickly; larger amounts may get a quick underwriter look within 48 hours. Any credit check that runs is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the Department of Agriculture

Pay online and receive the executed bond ready to file with your dealer license application. Wet-ink originals mailed whenever the department insists.

About this bond

What it is and who needs it.

What the commodity dealer bond actually covers

Montana licenses commodity dealers — businesses that buy grain and other agricultural commodities from producers — through the Department of Agriculture under MCA Title 80, Chapter 4. The bond protects the producers you buy from: if a dealer fails to pay for commodities it purchased, the producers can recover against the bond.

The amount is set by the department based on your commodity purchases, with a statutory floor of $20,000 and a cap of $1,000,000 under MCA 80-4-405. Larger buyers post larger bonds; the department fixes the figure on your license.

It is a three-party guarantee — you (the principal dealer), the surety, and the State of Montana for the benefit of producers (the protected parties). If the surety pays a producer’s claim, you repay the surety. Tell us the amount on your license; premiums start from $200 and your exact price is set at application.

MCA Title 80, Ch. 4 (Department of Agriculture)Montana commodity dealers are licensed by the Department of Agriculture under MCA Title 80, Chapter 4. The dealer bond protects producers who sell commodities to the dealer; MCA 80-4-405 sets a maximum bond of $1,000,000, and the department fixes the required amount (commonly a $20,000 minimum) based on the dealer’s purchases. Confirm the exact amount the department set on your license.

You need this bond if you are

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Applying for a commodity dealer license to buy grain or other commodities from Montana producers

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Renewing a dealer license and your current bond is expiring or non-renewing

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Increasing your purchase volume and the department raised your required bond amount

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Licensing as both dealer and warehouse — see the combined bond below

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

How much is the Montana commodity dealer bond?Premiums run 1% of the bond amount. The amount itself is set by the Department of Agriculture based on your commodity purchases — a $20,000 minimum, up to a $1,000,000 cap. Your exact price appears at the application.

Who does the bond protect?The producers you buy commodities from. If a dealer fails to pay for grain or other commodities it purchased, those producers can recover against the bond — and if the surety pays, the dealer repays the surety.

How is my amount determined?The Department of Agriculture sets it based on your purchases, within the statutory $20,000 minimum and $1,000,000 maximum. Your license or department notice states the figure — send it to us and we’ll confirm.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. Pricing is 1% of the bond amount.

I’m also a warehouse — do I need two bonds?Not necessarily. Montana offers a combined commodity dealer and warehouse bond. If you hold both licenses, see the combined bond in the related list below, and we’ll confirm which filing the department wants.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Montana bonds.

The Department of Agriculture is waiting on one document.

Premiums from $200, e-signed bond in 1–2 business days. Free until issued.

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Your premiumfrom $200

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