Illinois Grain Dealer Bond

Illinois requires licensed grain dealers to post a bond under the Illinois Grain Code to protect farmers and the Grain Insurance Fund. Bond premiums usually cost 1–5% of the amount set by the Illinois Department of Agriculture. Apply online through Lance Surety for fast approval, renewal reminders, and flexible options for bad credit. This ensures compliance with state law and safeguards producers in case of dealer default.

A grain dealer bond is a financial guarantee required under the Illinois Grain Code. It ensures licensed dealers meet their payment and storage obligations to farmers and grain depositors. If a dealer defaults, claims can be filed against the bond to compensate losses, with the Director of Agriculture serving as Trustee under 8 Ill. Adm. Code Part 3. Learn more about how a surety bond works here.

Dealers pay only a premium, usually 1–5% of the bond amount. For example, a $50,000 bond may cost $500–$2,500 annually depending on credit, while a $200,000 bond could run $2,000–$10,000. Bond amounts are tied to the dealer’s financials and obligations to cover purchases and storage responsibilities under the Illinois Grain Insurance Fund assessments (5-30 assessments). Lance Surety provides transparent quotes to match individual circumstances.

Applying is simple. Start by submitting the online application with basic business details and financial statements. The IDOA Bureau of Warehouses may require CPA-reviewed ratios or court-ordered bonds in some cases. Steps:

• Complete the application and upload supporting documents.
• Underwriting review—instant or same-day decisions are common.
• Pay the premium and receive the executed bond.
• File with the Illinois Department of Agriculture

Lance Surety provides automatic reminders and efficient processing so coverage stays continuous, ensuring your grain dealer license remains valid.

Yes. Lance Surety offers flexible underwriting programs for applicants with challenged credit histories. Even if financial ratios or past credit issues raise concerns, approvals are possible. Pricing is transparent, and clients are guided through document preparation to strengthen their case. This makes bonds accessible for both established dealers and incidental grain dealer applicants.

Is a surety bond always required to get an Illinois grain dealer license?

Most grain dealer applicants must post a bond unless exempt as incidental dealers handling limited volumes. The Director may also require a bond adequate to cover obligations based on financial review under Illinois surety bonds.

How is the bond amount determined in Illinois?

The Illinois Department of Agriculture calculates bond amounts using reported grain purchase volumes, financial statements, and applicable ratios. Court-ordered bonds may also apply in enforcement actions under sections 20–25 of the Code.

Who is the obligee if a bond is required?

The obligee is the Illinois Department of Agriculture, Bureau of Warehouses. Once the executed bond is issued, it must be filed with the Department consistent with your grain dealer license application requirements.

Illinois Department of Agriculture. (n.d.). Grain dealer and warehouse services.
https://www.illinois.gov/services/service.grain-dealer-warehouse.html

Illinois General Assembly. (n.d.). Illinois Grain Code (240 ILCS 40).
https://agr.illinois.gov/consumers/grainwarehouses/illinois-grain-code.html

Illinois General Assembly. (n.d.). Grain Insurance Fund assessments (5-30).
https://www.ilga.gov/Documents/legislation/ilcs/documents/024000400K5-30.htm

Illinois General Assembly. (n.d.). 8 Ill. Adm. Code Part 3.
https://www.ilga.gov/commission/jcar/admincode/008/00800003sections.html

Lance Surety. (n.d.). Illinois surety bonds.
https://www.lancesuretybonds.com/bonds-by-state/illinois

Lance Surety. (n.d.). Online application. 
https://www.lancesuretybonds.com/surety-bond-quote

Lance Surety. (n.d.). What is a surety bond?
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond

Lance Surety. (n.d.). Surety bonds questions. 
https://www.lancesuretybonds.com/learn/faqs