USDA Livestock Market Agencies Dealers & Packers (Clause 1 - Sells on commission) Bond
Overview
Selling livestock on commission puts you squarely under federal oversight — and that means a bond is part of doing business. If you operate as a market agency that sells livestock on a commission basis, the USDA requires you to post this surety bond before you handle a single transaction. It protects the producers and sellers you represent, guaranteeing you'll account for and pay over the proceeds you collect on their behalf. Bond Titan makes it fast to get this federal requirement handled so you can keep your operation moving.
Who Needs This Bond?
Livestock auction markets, order buyers acting as commission agents, and stockyard-based selling agencies are the primary applicants for this bond. If your business model involves receiving livestock from a producer, selling it on their behalf, and remitting net proceeds — you are a market agency selling on commission under federal rules. This is a Clause 1 bond, meaning it applies specifically to the commission-selling function, not to dealers buying for their own account. Any entity registered or seeking registration with the USDA under the Packers and Stockyards program in this capacity must have this bond in place.
What is this Bond For?
This bond guarantees that you will faithfully account for and pay over all funds received from the sale of livestock entrusted to you by producers and consignors. It is a financial protection mechanism for the people whose livestock you sell — if you fail to remit proceeds, the bond provides a source of recovery. The USDA's Packers and Stockyards program enforces this requirement at the federal level, applying to commission market agencies operating at stockyards and livestock markets nationwide. The bond does not cover your own trading losses — it specifically backs your fiduciary duty to the consignor.
When is it Required?
Before you register or renew your registration as a market agency with the USDA's Agricultural Marketing Service under the Packers and Stockyards program, this bond must already be executed and on file. The USDA will not approve your registration — or allow you to continue operating — without confirmation that the bond is in force. If your bond lapses, your authorization to operate as a commission-selling market agency is immediately at risk. Get this bond secured before you submit or renew your registration paperwork.
Where Does it Apply?
This is a federal bond with nationwide scope — it is not tied to any single state. It applies wherever you conduct commission sales of livestock at any stockyard, livestock market, or buying station subject to the Packers and Stockyards Act. Whether your operation is in Texas, Iowa, or any other state, the USDA requirement follows the activity, not the location.
How to Buy Online
Click 'Buy This Bond Online' on this page and you'll be taken directly into the secure surety portal in a new tab. Complete the application for the USDA Livestock Market Agencies (Clause 1 - Sells on Commission) bond and submit it — the process is built to move fast. Once approved and issued, you'll have the documentation you need to satisfy your USDA registration requirement.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and built for business owners who need a bond now, not after a round of phone tag with an agent. Our online catalog covers federal bonds like this one alongside thousands of state and local requirements — all accessible through a single portal. You get a straightforward purchase experience without waiting on a callback or navigating a complex broker process.