South Dakota Public Grain Buyer Bond
AmeriPro Surety Bonds | 844-589-9732
South Dakota Public Grain Buyer Licensing
Public grain buyers in South Dakota are regulated by the state’s Public Utilities Commission, under the Grain Warehouse Program.
You are required to purchase a minimum $50,000 surety bond; or a surety bond amount that is equal to the average dollar amount of your purchases over a 3-year period.
Your bond has a full annual term from June 30th to June 30th and renews on July 1st. What we write below assumes a full year term; however, the premium may be prorated depending on the date of purchase.
Your public grain buyer bond will always have an expiration date of June 30th.
Qualifying and the Premium
You are automatically approved, and without a credit inquiry, for the $50,000 South Dakota public grain buyer bond. The premium is just ¾ of 1%, which is $375 for a full year.
When you call us, we’ll just ask you some very basic questions: The name, exactly as it should appear on your surety bond, along with your business address, email and phone number.
We’ll also ask of the location of your grain dealership, and if you operate under a DBA, that name as well.
After payment of the premium, your bond and a Power of Attorney form are issued to you for filing. Upon receipt, you’ll need to sign your bond as Principal, have it notarized, and file it along with the POA form to:
State of South Dakota
500 East Capital Avenue
Pierre, South Dakota 57501-5070
Amounts Greater than $50,000
For a grain buyer bond greater than $50,000, the following differences apply:
- The surety bond application must be completed and signed by you, and then scanned and emailed to our office (we will begin it with you over the phone, filling in much of it with info you provide us);
- There is a review by an underwriter which includes a credit check inquiry (good credit will be required for approval through our agency);
- Upon approval, payment of the premium is at the same rate: ¾ of 1%, so a $100,000 surety bond will cost you $750 annually.
Surety Bond Term; Premium Prepayment Options
Your public grain buyer bond is active until June 30th of the same or following year of the date of its purchase.
Options exist to prepay your premium up to 3 years; however, you should bear in mind that this may not be a viable option as your surety bond amount required may change from one year to the next.
Purpose of Your Grain Buyer Surety Bond
In a general fashion, your grain buyer surety bond is required to ensure your compliance with all laws involved in grain purchasing within South Dakota.
More specifically, your bond is a financial guarantee for the Public Utilities Commission that you will pay in a timely manner the purchase price of the grain sold to you, and that you will make the deliveries accordingly.
South Dakota Statute 49-53 detail your legal obligation as a purchaser.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide grain dealer and buyer surety bonds wherever required nationwide.
Our agency is also an online provider of license and permit, court, probate, and other surety bonds in South Dakota and all 50 states.
Please call us today at:
Or, you may fill out the form below and a Surety Agent will contact you…