What Are USDA Bonds?
USDA bonds are federal surety bonds required by the U.S. Department of Agriculture to ensure businesses operating in regulated agricultural industries comply with federal laws, protect producers, and safeguard the food supply chain.
These bonds protect farmers, suppliers, and consumers from:
- Non‑payment for agricultural products
- Misrepresentation of goods
- Failure to meet federal grading or inspection standards
- Violations of USDA program rules
- Financial loss due to business misconduct
If your business operates under USDA oversight, you may be required to file one or more USDA‑mandated bonds before receiving or renewing your license.
Types of USDA Bonds We Provide
Below is a complete list of the most common USDA‑required bonds.
1. PACA Bonds (Perishable Agricultural Commodities Act) - Required for produce dealers, brokers, and wholesalers. Guarantees payment to growers and compliance with PACA regulations.
2. Grain Dealer Bonds - Required for grain buyers, handlers, and elevators. Protects producers from non‑payment for grain purchases.
3. Grain Warehouse Bonds (USDA Warehouse Act) - Required for public grain warehouses storing agricultural commodities. Ensures proper storage, handling, and delivery of stored grain.
4. Livestock Dealer Bonds (P&S Act Bonds) - Required under the Packers & Stockyards Act. Protects livestock sellers from non‑payment and unfair practices.
5. Market Agency Bonds - Required for livestock commission merchants and market agencies. Guarantees proper handling of livestock proceeds.
6. Packers Bonds - Required for meat packers purchasing livestock. Ensures timely payment to producers and compliance with USDA rules.
7. Cotton Warehouse Bonds - Required for cotton warehouses storing bales under USDA regulation. Guarantees proper storage and delivery of cotton.
8. Tobacco Warehouse & Dealer Bonds - Required for tobacco dealers and storage facilities. Ensures compliance with USDA grading, inspection, and payment rules.
9. Milk Handler / Dairy Bonds - Required for milk handlers, processors, and distributors. Protects dairy farmers from non‑payment for milk deliveries.
USDA Bond Amounts and Cost
Bond amounts vary widely depending on:
- Type of USDA license
- Volume of agricultural products handled
- Annual purchases or storage capacity
- Federal program requirements
Your premium depends on:
- Bond amount
- Credit score
- Business financials
- Industry experience
Most USDA‑regulated businesses qualify quickly with competitive rates, even for high‑value bonds.
Who Needs a USDA Bond
You may need a USDA bond if you operate:
- A produce dealership
- A grain elevator or grain buyer
- A livestock auction, market agency, or packer
- A cotton or tobacco warehouse
- A dairy processing or distribution business
- A commodity storage facility
- Any business regulated under PACA, P&S Act, or the USDA Warehouse Act
If your business buys, sells, stores, or handles agricultural commodities, a USDA bond may be mandatory.
USDA Bond Requirements & Eligibility
USDA programs typically require:
- Completed federal license application
- USDA‑mandated bond amount
- Credit review
- Financial statements
- Annual or semi‑annual renewal
Some USDA programs require increased bond amounts based on volume or risk.
How the USDA Bond Process Works
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Secure the Lowest Rate
We match you with the best rate available from A‑rated sureties.
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Receive your bond
Same‑day issuance available for USDA filing.
Why Agricultural Businesses Choose Us
- Lowest rates from A‑rated sureties
- Fast approvals
- Digital delivery for immediate USDA filing
- Agricultural & USDA‑bond specialists
- 100% federal compliance guaranteed
Top USDA Bond Questions Answered
Our most common questions answered efficiently.
Premiums vary based on bond type, amount, and financials.
Many USDA bonds are approved the same day.
It guarantees compliance with federal agricultural regulations and payment to producers.
Surety bonds are generally non‑refundable once issued.
Yes — each USDA program typically requires its own bond.
