Louisiana cotton merchant bonds.
From $100.
A Louisiana cotton merchant license from the Agricultural Commodities Commission (LACC) can require a surety bond standing behind the cotton you buy from Louisiana growers. Premiums price at 0.5% of your bond amount, $100 minimum — one soft credit pull, never a hard inquiry, that checks approval, not price.
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How much does a Louisiana cotton merchant bond cost?
0.5% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps to licensed.
Your LACC cotton merchant license is waiting on this bond. Here is the entire process — no broker phone tag:
Apply once, online
Business details, owner information, the bond amount the LACC set, and the effective date. The only extra step is a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.
E-sign & file with the LACC
Pay online and receive the executed bond ready to file with your cotton merchant license application or renewal. Wet-ink originals mailed whenever the Commission insists.
What it is and who needs it.
What the cotton merchant bond actually covers
The Agricultural Commodities Commission (LACC) regulates cotton merchants alongside grain dealers and commodity warehouses, under the Department of Agriculture and Forestry. A cotton merchant — sometimes licensed as a cotton service provider — is a buyer who purchases or contracts to purchase cotton grown by Louisiana farmers.
The bond is a grower-protection guarantee: it stands behind the money you owe farmers for cotton delivered on credit. If a licensed merchant fails to pay, a harmed grower can recover against the bond. The LACC sizes the amount to your purchase volume.
A note on current law: Louisiana has revised how it backs producers, leaning on a mix of security, stock insurance, and the Grain and Cotton Indemnity Fund in recent sessions. We will issue the bond the LACC asks you to file — send us your license packet and we will match the amount and form to what the Commission requires today.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
E-sign & file with the LACC. Pay online and receive the executed bond ready to file with your cotton merchant license application or renewal. Wet-ink originals mailed whenever the Commission insists.
What sets the price
The premium is 0.5% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
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 →Common questions.
Other Louisiana bonds.
Price and requirements checked on the carrier’s application, . Page updated .
The LACC is waiting on one document.
From $100, soft pull only. Enter the amount the Commission set and file the same day.