Illinois Grain Dealer Bond: Is One Required?
Not as a stated license requirement. The Illinois Grain Code does not set a surety bond for grain dealer licenses. It relies on financial tests, insurance fund assessments and collateral instead.
If the Department asks you for collateral or a guarantee, tell us what you were asked for and we will check surety options.
Prefer to talk? Call 1-844-810-2663
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All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
What Illinois requires instead of a bond
- Financial tests. Audited or reviewed financial statements that meet the ratio and equity tests below.
- Grain Insurance Fund assessments. New licensees pay these over their first 3 years.
- Collateral. The Department can require it when a licensee has a financial deficiency or a violation, and may also ask for a personal or corporate guarantee.
An applicant for a new license cannot use collateral to meet the ratio and equity minimums (Sec. 5-25(b)(5)).
Financial tests
| Test | Requirement | Section |
|---|---|---|
| Current ratio | At least 1:1 | 5-25(b)(1) |
| Debt to equity | No more than 3:1 | 5-25(b)(2) |
| Adjusted equity | A minimum phased up to $100,000 | 5-25(b)(3) |
What counts as collateral
The Code defines collateral as irrevocable letters of credit, certificates of deposit, cash or cash equivalent, and other property acceptable to the Department (Sec. 1-10). Surety bonds are not on that list. The Department decides what else it will accept.
Grain Insurance Fund
The fund protects producers if a licensed dealer fails (Sec. 1-5). New licensees pay assessments over 3 years, based on estimated grain purchases (Sec. 5-30).
Where a surety can help
If IDOA asks you for collateral or a guarantee, tell us what you were asked for. We shop multiple Treasury-listed surety carriers and can check whether a surety option fits. We do not claim IDOA accepts a surety bond, so confirm with the Department first. Any bond cost is an estimate until the surety underwrites it.
Grain dealer bonds in other states: grain dealer bonds. All Illinois bonds: Illinois surety bonds.
Frequently asked questions
Does Illinois require a grain dealer bond?
The Grain Code (240 ILCS 40) does not set a surety license bond for grain dealers. The Department relies on financial tests, insurance fund assessments and collateral. Confirm current practice with IDOA.
What is collateral under the Grain Code?
Irrevocable letters of credit, certificates of deposit, cash or cash equivalent, and other property the Department accepts. The Department can require it when a licensee has a financial deficiency or a violation.
Who administers the grain dealer license?
The Illinois Department of Agriculture.
What is the Grain Insurance Fund?
A fund that protects producers if a licensed grain dealer fails. New licensees pay assessments into it over 3 years.
Can a bond replace collateral?
Only if the Department agrees to accept it. Ask IDOA first. If it does, we can check surety options.
Tell us what Illinois asked you for
We shop multiple Treasury-listed surety carriers. If one can't write your bond, we can take it to another.
Get my quotePrefer to talk? Call 1-844-810-2663
Free quote. Pay only when your bond is issued.
Sources (rules as of Sep 30, 2026)
Rules as of Sep 30, 2026. Requirements can change; confirm with the agency before you file. General information, not legal advice.