USDA Livestock Market Agencies Dealers & Packers (Clause 2 - Buys on commission or as a dealer) Bond
Overview
Buying livestock on commission or as a dealer under federal oversight? You need this bond before you can operate legally. The USDA Livestock Market Agencies Dealers & Packers (Clause 2) Bond is a federal surety requirement that protects producers, sellers, and the public from financial harm caused by dealers and commission buyers who fail to pay or perform. It is your mandatory credential under the Packers and Stockyards Act program administered by the USDA Agricultural Marketing Service.
Who Needs This Bond?
Livestock dealers who purchase animals on their own account for resale, commission buyers who purchase livestock on behalf of clients at public or private markets, and auction market agents who facilitate livestock transactions under Clause 2 classifications all need this bond. If you have been told by the USDA or a registering authority that you fall under the Clause 2 category — buying on commission or as a dealer — this is the exact bond you must file.
What is this Bond For?
This bond guarantees that you will meet your payment obligations to livestock sellers and producers when you act as a dealer or commission buyer. If you fail to pay for livestock you purchased, or fail to properly account for funds received on a client's behalf, a valid claim can be made against this bond. It protects the sellers and principals who relied on your performance in the transaction.
When is it Required?
Before you receive your USDA registration or operating authority as a Clause 2 livestock dealer or commission buyer, this bond must be on file. The USDA's Packers and Stockyards program requires the bond as a condition of registration — you cannot lawfully conduct covered livestock buying activities until it is executed and submitted. This is not a post-registration formality; it is a prerequisite.
Where Does it Apply?
This is a federal bond requirement enforced nationwide by the USDA under its Packers and Stockyards program. It applies regardless of which state you operate in — the obligation runs to the federal government and to the livestock sellers and producers you deal with across state lines.
How to Buy Online
Click 'Buy This Bond Online' to open the secure surety portal in a new tab, where you can complete your application and purchase your bond. The process is fully online — no agent callback required, no waiting on paperwork.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and built for fast, direct online bond purchases across our nationwide catalog. You get immediate access to this federal agriculture bond without the delays of traditional agency workflows. We stock the bonds that regulated industries need — including USDA-required bonds like this one — so you can move forward now.