Colorado Commodity Handler License Surety Bond

The state of Colorado Department of Agriculture manages and maintains the licensing requirements for Commodity Dealers and Handlers, Farm Products Dealers, Produce Dealers and Farm Products Brokers.  The focus of the CO Department of Agricultures Commodity Warehouse Program is to "ensure the security of grain and beans held in safekeeping for Colorado producers and owners, and to assure them they will receive just compensation for their products, thus fostering a stronger agricultural economy and lower food prices for all consumers. 

Commodity Handlers License Surety Bond

In order to transact business in the state of Colorado as a Commodity Dealer / Handler, you must apply with the CO Dept of Agriculture by completing the Commodity Handler License Application , pay the required license and inspection fees, submit a financial statement and post a surety bond in accordance with Title 35, Article 36 of the Colorado Revised Statutes.  The required bond amount will vary depending on your specific business type and is calculated as follows:

Method #1:  2% of annual Colorado commodity purchases with a minimum bond of $10,000 and a maximum bond of $1,000,000.

Method #2:  $.10/bu. for grain storage capacity and/or $.50/cwt. of bean storage capacity with a minimum bond of $25,000 and a maximum bond of $1,000,000

Which ever method yields the higher bond amount will be the bond amount required by the Department of Agriculture

Additional bond may be required, if a public warehouse's net worth falls below $.25/bu. of grain storage capacity and/or $1.25/cwt. bean storage capacity. 

Farm Products Dealers License Surety Bond

2% of annual Colorado purchases, a minimum bond of $5,000 and a maximum bond of $1,000,000.

Produce Dealers License Surety Bond

2% of annual Colorado purchases, a minimum bond of $3,000 and a maximum bond of $1,000,000.  For dealers with storage facilities a minimum bond of $10,000 and a maximum bond of $1,000,000.

Farm Products Brokers License Surety Bond

2% of annual Colorado purchases, a minimum bond of $10,000 and a maximum bond of $1,000,000.


By completing our online application you will receive a free, no obligation quote for your Commodity Handler bond, typically within the same day.