TN commodity dealer & warehouse bonds.
From $100. Apply for your price.

Tennessee licenses grain and commodity dealers and warehouses through the Department of Agriculture and conditions the license on a surety bond. The amount is set by the commissioner — a $20,000 minimum — and premiums start from $100 via a soft credit check that never affects your score.

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Required for a TN commodity dealer or warehouse license under T.C.A. § 43-32-101 et seq.

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Amount set by the commissioner — $20,000 minimum, up to $500,000 depending on volume

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Premiums start from $100 — a soft credit check may apply, never a hard inquiry

0.5% of bond amount$100 minimumSoft pullnever a hard inquiryInstantissued the moment you pay

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How it works

Apply to filed in one sitting.

Enter your amount, consent to a soft pull, and file with the Department of Agriculture. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the commissioner set, and the effective date — that is the application, plus a one-time soft-pull consent.

WITHIN 48 HOURS

Reviewed & approved

Most clear quickly; larger commodity bonds may get a brief underwriter review. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

File with the Department of Agriculture

Receive the executed bond ready to file with your commodity dealer or warehouse license. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the commodity bond actually covers

Tennessee’s Commodity Dealer and Warehouse Law (T.C.A. § 43-32-101 et seq.) regulates businesses that buy grain and other commodities from producers or store them for hire. The Department of Agriculture conditions the license on a surety bond that backs payment and delivery to producers.

The bond is the mechanism the commissioner uses if a dealer defaults on payment to producers for commodities purchased, or a warehouse fails to deliver value for commodities stored. Acting as trustee of the bond, the commissioner calls on it and distributes the proceeds to the harmed producers.

The amount is set by the commissioner — a $20,000 minimum, scaling with volume up to a $500,000 cap — and may be waived for a business whose net worth is at least three times the required amount. Whatever amount applies, premiums start from $100 via a soft credit check.

T.C.A. § 43-32-101 et seq. (Commodity Dealer and Warehouse Law)Tennessee’s Commodity Dealer and Warehouse Law (T.C.A. § 43-32-101 et seq.) requires a licensed commodity dealer or public warehouse to file a surety bond with the Department of Agriculture — a $20,000 minimum, in an amount set by the commissioner and capped at $500,000 — for the protection of producers who sell to or store with the licensee. The commissioner, as trustee of the bond, calls on it to pay producers on a default. An incidental grain dealer may instead file a $1,000 bond.

You need this bond if you are

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A grain or commodity dealer buying from Tennessee producers

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A public warehouse storing grain or commodities for hire

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Licensing or renewing with the Department of Agriculture’s Consumer & Industry Services

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Adjusting your bond after the commissioner reset your required amount for volume

One application, soft pull only.

Submit the application with the bond amount the commissioner set, including a one-time consent to a possible soft credit check — your bond is typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

How much is the Tennessee commodity dealer bond?Premiums are 0.5% of the bond amount, $100 minimum. The amount is set by the commissioner — a $20,000 minimum, up to a $500,000 cap depending on volume. Your exact price is confirmed at the application.

How is the bond amount determined?The commissioner sets it based on your volume of business, with a $20,000 minimum and a $500,000 maximum. A business with a net worth of at least three times the required amount may have it waived.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. It informs approval and credit-tier pricing.

What does the bond protect against?It protects producers if a dealer defaults on payment for commodities purchased, or a warehouse fails to deliver value for commodities stored. The commissioner calls on the bond as trustee and pays the harmed producers.

What about incidental grain dealers?An incidental grain dealer (limited buying volume) may file a $1,000 bond instead. Send us your situation and we’ll confirm which applies.

Related bonds

Other Tennessee bonds.

Commodity bond, issued this week.

Premiums from $100, soft pull only. Enter the commissioner’s amount and file.

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