Tennessee Commodity Dealer and Warehouse Bond
Overview
Tennessee requires commodity dealers and warehouse operators to post this surety bond before conducting business in the state's agricultural markets. It protects Tennessee farmers and producers who store or sell grain, soybeans, corn, and other commodities through licensed facilities. Regulators use this bond as financial assurance that dealers and warehouse operators will honor their obligations to agricultural producers. If you buy, sell, or store agricultural commodities in Tennessee under a state-issued license, this bond is part of your licensing package.
Who Needs This Bond?
You've been told you need this bond to get or renew your Tennessee commodity dealer or warehouse license. That means you operate a facility that buys agricultural commodities from producers, stores them on behalf of producers, or both. Grain elevators, feed dealers, and agricultural purchasing agents who deal in bulk commodities at the commercial level are the primary applicants. If Tennessee's Department of Agriculture has flagged your license application as requiring a surety bond, this is the one you need.
What is this Bond For?
This bond guarantees that licensed commodity dealers and warehouse operators in Tennessee fulfill their financial obligations to the farmers and producers who sell or store commodities with them. If a dealer fails to pay a producer for purchased grain, or a warehouse fails to deliver stored commodities or their equivalent value, the bond provides a financial recovery mechanism. Tennessee's agricultural regulatory authority holds this bond as protection for the state's farming community. It is not insurance for the business — it is a financial guarantee that backs the dealer's or warehouse operator's performance.
When is it Required?
Before your Tennessee commodity dealer or warehouse license is issued or renewed, this bond must already be in place. The state will not issue a license without proof of the bond. If you are adding a new location, expanding your license category, or reinstating a lapsed license, the bond requirement applies at each step. Do not wait until the last minute — your license clock does not start until the bond is on file with the state.
Where Does it Apply?
This bond applies statewide across Tennessee and is administered at the state level, not by individual counties or municipalities. Any facility buying or warehousing agricultural commodities under Tennessee's licensing program is subject to this requirement. The bond must name the correct obligee as identified on your Tennessee license application.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal will open in a new tab. Complete your application directly in the portal — no phone calls, no waiting on an agent. Once approved and payment is processed, your bond documents are ready for submission to Tennessee's licensing authority.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and gives Tennessee commodity dealers and warehouse operators instant access to this bond without the delays of a traditional agency. Our online catalog covers agricultural bonds across the country, so you get the right bond for your specific license requirement — fast. No agent callbacks, no office visits, no paperwork delays.