P&S packer bonds.
Buying as a packer. From $100.

A packer whose average annual livestock purchases exceed the regulatory threshold must file a Packers & Stockyards bond with USDA AMS under 7 U.S.C. §204. The amount tracks your purchase volume; the premium is 0.5% of the bond amount plus a $50 fee, with a $100 minimum — enter your figure and your exact price appears at the application.

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Required of a packer buying livestock — Clause 4 of the standard P&S bond form

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Amount is set by 9 CFR §201.30 — based on your average livestock purchase volume

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A quick soft credit check may apply — never a hard inquiry, no impact on your score

From $100your exact price at application0.5% + $50the rate, $100 minimumSoft pullnever affects your score

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How it works

Three steps. One sitting.

Your registration with USDA AMS is waiting on this bond. Here is the whole process:

TODAY · ONLINE

Apply once, online

Business details, the bond amount your purchase volume requires, and an effective date. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

SAME DAY

File with USDA AMS

Receive the executed bond on the standard P&S bond form, ready to file with the Packers & Stockyards Division. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the packer bond actually guarantees

Under the Packers and Stockyards Act (7 U.S.C. §181 et seq.), a packer whose average annual livestock purchases exceed the regulatory threshold must register with USDA AMS and maintain a surety bond. The bond stands behind the money the packer owes livestock sellers for the animals it buys.

The amount is fixed by 9 CFR §201.30, computed from the packer’s livestock purchase volume, rounded up to the next $5,000, with a $10,000 minimum and a graduated cap on the largest operations.

It is a three-party guarantee — you (the principal), the surety, and the United States as obligee — protecting the sellers the Act covers. It is not insurance for you: if the surety pays a valid claim, you repay the surety.

7 U.S.C. §204 · 9 CFR §201.30The Packers and Stockyards Act (7 U.S.C. §181 et seq.; bonding authority at §204) and 9 CFR §201.30 require a packer whose livestock purchases exceed the regulatory threshold to maintain a bond filed with USDA AMS, in an amount computed from purchase volume (minimum $10,000, in no case less than $10,000). Confirm your required amount with the Packers & Stockyards Division.

You need this bond if you are

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A packer buying livestock above the regulatory purchase threshold — Clause 4 of the P&S bond

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Registering with the Packers & Stockyards Division for the first time

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Re-filing after a volume change that raised your required amount under §201.30

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Replacing a non-renewed bond to keep your AMS registration in good standing

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 issued when you pay.

Start the application →

FAQ

Common questions.

How much is the packer bond?The premium is 0.5% of the bond amount plus a $50 fee, with a $100 minimum. The bond amount is set by 9 CFR §201.30, computed from your livestock purchase volume, with a $10,000 minimum. Enter that figure and your exact price appears at the application.

Does every packer need a bond?No. The bonding requirement applies to packers whose average annual livestock purchases exceed the threshold in 9 CFR §201.30. Smaller packers may be exempt — AMS can confirm whether your operation must bond.

Who requires it?USDA’s Agricultural Marketing Service, through the Packers & Stockyards Division, under 7 U.S.C. §204.

Is there a credit check?A quick soft credit check may apply, which never affects your score — it’s never a hard inquiry. It informs approval only — price is set by the bond amount, at 0.5% of the bond amount plus a $50 fee ($100 minimum), not by a credit tier.

When does it renew?Terms run 1, 2, or 3 years. We send renewal notices 60 and 30 days out, and the bond must stay on file for your AMS registration to stay in good standing.

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 Federal bonds.

Keep your packer registration current.

From $100, short application, bond issued when you pay. Free until issued.

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