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Alabama grain dealer bonds.
From $250.
Every licensed Alabama grain dealer files a surety bond for each location with the Department of Agriculture and Industries under Ala. Code §2-31-4. The amount is 10% of what you paid producers for grain over the prior 12 months — at least $25,000, no more than $100,000. The premium is 1% of the bond amount.
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Three steps. One sitting.
No underwriting queue for the standard grain dealer bond — enter your amount, pay, and file with the Department of Agriculture and Industries. Here is the whole thing:
Apply online
Your business details, the bond amount your prior-year purchases require, and the effective date — that is the entire application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay. Most applications approve instantly. Larger amounts may get a quick review.
File with the Department
Submit the executed bond with your grain dealer license application — one bond per location. Wet-ink originals mailed whenever the state insists on them.
What it is and who needs it.
What the grain dealer bond actually guarantees
Alabama licenses grain dealers through the Department of Agriculture and Industries under Ala. Code §2-31-4. A grain dealer buys grain from producers, and the bond stands behind that obligation — it is a producer-protection guarantee that you will actually pay the farmers you buy from.
The amount is calculated, not flat: 10% of the aggregate dollar amount you paid producers for grain in the prior 12 months, rounded to the nearest $1,000, with a $25,000 minimum and $100,000 maximum for each separate location. Dealers in business less than a year file at the minimum for that first year.
It is a three-party arrangement — you (the principal), the surety, and the State of Alabama with the producers you buy from as the protected parties. If you fail to pay for grain you received, a harmed producer can recover against the bond; if the surety pays, you repay the surety. The statute also lets the Commissioner waive the bond in limited circumstances.
You need this bond if you are
One application, issued on the spot.
Submit the application with your required bond amount — the executed bond is generated instantly, ready to file with the Department of Agriculture and Industries.
Start the application →Common questions.
Other Alabama bonds.
Grain dealer bond, issued today.
Premiums from $250 — your exact price appears at the application. Enter the amount your purchases require and file with the Department the same day.