Tennessee anhydrous ammonia dealer bonds.
From $100.

Before selling anhydrous ammonia as a fertilizer in Tennessee, a dealer must file a $1,000 bond with the Department of Agriculture to get a dealer permit. Premiums start from $100. The bond issues the moment you pay — no credit review of any kind, not even a soft pull.

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Required before a TN anhydrous ammonia dealer permit issues — under T.C.A. § 43-11-304

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Fixed $1,000 bond — premiums from $100

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Multi-year terms available — set it up once, forget it for up to 3 years

A-ratedA.M. Best carriersFastoften same purchase1–3 yrterms available

Trusted by industry leaders

How it works

Three steps. One sitting.

License bonds are the simplest thing in surety. Here's the entire process:

NOW · ONLINE

Apply online

Business details and an effective date. That's the application — no financials, no credit section, no follow-up scavenger hunt.

MINUTES, USUALLY

Pay & e-sign

License bonds like this are among the thousands of bond types that issue right after purchase.

SAME DAY

File with the Department of Agriculture

Your executed bond arrives by email, ready to file with your dealer-permit application. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

Anhydrous ammonia is a widely used nitrogen fertilizer that is also hazardous to handle, so Tennessee requires a permit before anyone deals in it. As a condition of that permit, the dealer files a $1,000 bond with the Department of Agriculture under T.C.A. § 43-11-304.

The bond guarantees compliance with the anhydrous ammonia fertilizer law and rules — covering the sale, handling, and installation of the equipment used with the product. It is a three-party arrangement among you (the principal), the surety, and the State of Tennessee (the obligee).

The same statute separately requires the dealer to show financial responsibility — evidence of at least $25,000 in insurance, or a separate bond up to that amount. The $1,000 permit bond here is the compliance guarantee, with premiums starting from $100; the financial-responsibility piece is a distinct requirement. If the surety pays a claim, you repay the surety.

T.C.A. § 43-11-304Tennessee Code Annotated § 43-11-304 requires an applicant for an anhydrous ammonia (fertilizer) dealer permit to furnish a $1,000 surety bond, payable to the State of Tennessee, guaranteeing compliance with the anhydrous ammonia provisions and rules governing the sale, handling, and installation of equipment. The statute also separately requires evidence of financial responsibility — not less than $25,000 in insurance, or a surety bond up to that amount.

You need this bond if you're

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Applying for a TN anhydrous ammonia dealer permit from the Department of Agriculture

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Renewing your dealer permit and your current bond is expiring

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A farm-supply or co-op business selling anhydrous ammonia fertilizer

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Installing or servicing anhydrous ammonia handling equipment as part of your dealing

One application, issued instantly.

These are the actual issuing fields — the application collects no credit information for most dealers.

Start the application →

FAQ

Common questions.

How much is the Tennessee anhydrous ammonia dealer bond?Premiums are 0.5% of the bond amount, $100 minimum. Your exact price is confirmed at the application.

Do I pay the $1,000?No. You pay the premium, from $100. The $1,000 is the surety's maximum liability if a valid claim is made — not a deposit, and nobody holds your money.

Is the $1,000 bond the same as the financial responsibility requirement?No — they are separate. The $1,000 permit bond guarantees compliance with the anhydrous ammonia rules; the law separately requires evidence of financial responsibility (at least $25,000 in insurance, or a bond up to that amount). Ask us if you need both.

Is there a credit check?The application collects no credit information for most dealers. Most applications approve instantly.

When does it renew?The bond must stay active for as long as you hold the dealer permit. You can buy a 1, 2, or 3-year term; we send renewal notices 60 and 30 days out.

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 Tennessee bonds.

Anhydrous ammonia permit, one document away.

Premiums from $100, no credit review, bond often issued in the same sitting. Free until issued.

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Your price$100

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