Livestock Dealer & Market Agency Bond
If you buy or sell livestock on commission, or run a livestock market, federal rules under the Packers and Stockyards Act generally require you to carry a surety bond. We shop multiple Treasury-listed surety carriers. Tell us about your business, get a quote, and pay only when your bond is issued.
Prefer to talk? Call 1-844-810-2663
Free quote. Pay only when your bond is issued.
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
What is a livestock dealer bond?
A livestock dealer bond, also called a Packers and Stockyards (P&S) Act bond, is a surety bond that backs your payment obligations to livestock sellers and buyers. If you fail to pay, the bond gives the injured party a way to be paid. You, the principal, remain responsible to repay the surety.
The bond is for businesses regulated under the P&S Act, such as:
- Market agencies selling on commission
- Dealers and market agencies buying on commission
- Market agencies acting as clearing agencies
Who needs a market agency or livestock market bond?
Bond requirements depend on how you operate, so confirm your own registration category with USDA. Generally, the bond applies to:
- Livestock markets and market agencies that sell livestock on commission
- Dealers and market agencies that buy livestock, including on commission
- Clearing agencies that clear livestock transactions
Some states also license livestock dealers and set their own bond rules. Check your state agency for its requirements.
How the bond amount is set (9 CFR 201.30)
The federal rule ties the bond to your prior year's livestock volume.
| Your activity | How the amount is figured | Cap | Minimum |
|---|---|---|---|
| Market agency selling on commission | Prior year’s livestock sales divided by the days sold (divisor 130 or less), rounded up to the next $5,000 | Over $50,000, need not exceed $50,000 plus 10% of the excess | $10,000, or a higher state amount |
| Dealer or market agency buying on commission | Annual purchases divided by half the business days (divisor 130 or less), rounded to the next $5,000 | Over $75,000, need not exceed $75,000 plus 10% of the excess | $10,000, or a higher state amount |
| Market agency as clearing agency | Livestock value cleared divided by half the business days (divisor 130 or less), rounded to the next $5,000 | Over $75,000, need not exceed $75,000 plus 10% of the excess | $10,000, or a higher state amount |
If your prior-year figures are not representative, USDA's rule allows other handling values in special circumstances. USDA can also require you to adjust an inadequate bond.
Worked example (illustration only)
Made-up numbers. Your actual bond amount is set by the rule and your own records.
A market agency buying on commission spent $13,000,000 on livestock last year and conducted business on 260 days.
- Half the business days is 130, which is within the divisor limit.
- $13,000,000 divided by 130 is $100,000.
- Because the result is over $75,000, the bond need not exceed $75,000 plus 10% of the $25,000 excess, which is $77,500.
- Rounded up to the next $5,000, the bond amount is $80,000.
Source: 9 CFR 201.30 (rules as of Sep 30, 2026).
What does a livestock dealer bond cost?
You pay a premium, not the bond amount. The premium is typically a small percentage of the bond amount per year; the carrier sets the final price. Your rate depends on your credit, your financials and your bond amount, and it is an estimate until underwriting is complete. You pay only when your bond is issued.
How to get your bond
- Request a quote. Give us your business details and the bond amount, or your annual livestock volume.
- We shop it. We shop multiple Treasury-listed surety carriers.
- Review and approve. You see your premium before you pay.
- Pay and get issued. You pay only when your bond is issued. Then file it as USDA instructs.
Always follow USDA's current instructions for filing and registration. See the AMS bond requirement page.
Related bonds
Frequently asked questions
Do I need a livestock dealer bond?
Many dealers, market agencies and clearing agencies regulated under the Packers and Stockyards Act must have bond coverage. Check your category with USDA AMS, and check whether your state also licenses dealers.
How much is the bond?
It is based on your prior year’s volume and the formula in 9 CFR 201.30. The minimum is $10,000, or a higher amount if state law requires it. See the table on this page.
What if I am a new business with no prior year?
The rule allows USDA to consider other handling values in special circumstances. Confirm your starting amount with USDA, and we can then quote that amount.
Can you place my bond if I have had credit problems?
We shop multiple Treasury-listed surety carriers and work with carriers that write challenged credit; the carrier decides. Terms and pricing vary by applicant.
Is it the same as a grain dealer or warehouse bond?
No. Those are separate bonds with their own rules. See our grain dealer bond and warehouse bond pages.
When do I pay?
You pay only when your bond is issued.
Get my livestock dealer bond quote
We shop multiple Treasury-listed surety carriers. If one can't write your bond, we can take it to another.
Get my livestock dealer bond 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. Bond amounts are set by USDA and state rules. General information, not legal advice.