Title: Grain Buyer License
The Grain Licensing Program licenses both grain buyers and grain warehouses and is designed to help protect grain sellers and depositors from monetary loss if they do not receive payment for grain sold or if grain stored is damaged or lost. Minnesota Department of Agriculture (MDA)
Creation Date: 9/11/2008 2:13:34 PM
Modification Date: 7/16/2019 8:34:10 AM
Agency Name: Agriculture (MDA), Minnesota Department of
Agency URL: https://www.mda.state.mn.us/
Agency Description: The mission of the Minnesota Department of Agriculture (MDA) is to enhance Minnesotans' quality of life by ensuring the integrity of our food supply, the health of our environment, and the strength of our agricultural economy.
Agency Phone: 651-201-6000
Agency Fax: Agency URL: https://www.mda.state.mn.us/
625 N. Robert Street
Division Name: Plant Protection
Division Phone: Division Fax: Division URL:
Renewal URL: https://www2.mda.state.mn.us/webapp/erenewal/login.jsp
Requirements: Types of licenses
- Grain Buyer License: Required by anyone buying grain in Minnesota with the purpose of reselling the grain or products made from the grain. In addition to a license, a bond must be acquired. Bonds requirements range from $10,000 to $150,000 and are based on the dollar amount of the buyers annual grain purchases.
- Grain Buy & Store License: Required to operate a grain warehouse that stores grain for compensation. Grain warehouses must acquire a grain bond which provides reimbursement to depositors experiencing damage or other grain loss. Bonds range from $10,000 to $500,000 for storage licenses.
- Grain warehouses are required to have two examinations each year. Examiners provide an onsite review including an audit of records and a physical measurement of storage bins and facilities to identify total capacities, shortages in storage, over obligations, open storage accounts, contracts, insurance policies and safety issues. We can provide both examinations but you may instead have a qualified non-governmental unit conduct one of the two exams unless you are subject to the United States Warehouse Act.
You do not need to be licensed if you sell your own grain, buy only seed grain for crop production, or purchase grain as feed for your own livestock or poultry.
Applying for a license
- Submit an application along with the required payment
- Obtain the required bond
- Submit a voided Warehouse Receipt or Scale Ticket. These forms must be printed in duplicate, consecutively pre-numbered, and show the name and location of the elevator.
- If storing grain you must file a tariff or schedule of all charges relating to the storage of grain.
- If storing grain, you must provide evidence of insurance for any loss of stored grain due to fire, windstorm, and extended coverage risks.
A grain buyer's license license must be purchased for each location. Only one storage license is required if there is one owner and operator for multiple storage facilities within the same city.
The licensing period is July 1st - June 30th with an annual renewal. A renewal application will be mailed to you in May before your license expires and it must be returned by July 1st or late fees will apply. If you think your renewal may have been lost in the mail please contact us, we will gladly resend the renewal application. Please do not print out and send a new application from this page as it may cause a delay in receiving your license.
Responsibilities as a licensed entity
- For cash sales, you must pay no later than close of business the following business day, or by mailing/wiring funds to the seller's account in the amount of a least 80 percent of the value of the grain at delivery. If there are multiple shipments, you must pay within 10 days of each shipment, except that when the entire sale is completed, you must pay in cash/check not later than the close of business on the next business day, or within 48 hours, whichever is later.
- If purchasing grain by voluntary extension of credit, you must document the sale in writing, using the proper format and within the time periods indicated by law.
- If you purchase grain by voluntary extension of credit, you must at all times maintain grain, rights in grain, or proceeds from the sale of grain totaling 90 percent of the grain buyers' obligation for grain purchased by voluntary extension of credit contracts.
- Maintain accurate books and records, including a record of grain warehouse receipts if storing grain and secure them in a safe place.
- If storing grain, you must deliver grain within 48 hours of demand for such grain.
- If storing grain, a statement of all charges relating to the storage must be posted at each licensed location and must be clearly visible to the public.
How to get a bond
You may be able to obtain a bond through your bank or insurance carrier.
What does the bond cover
The bond provides compensation to sellers of grain against the breach of contract for cash sales or the breach of a grain storage contract.
Use something other than a bond for security
In lieu of a bond, you can provide cash, certified check, cashier's check, postal, bank, or express money order, assignable bonds or notes of the United States, or an assignment of a bank savings account or investment certificate or an irrevocable bank letter of credit.
Rules: 1562.0100 - .2200
Grain Buyer License Application (PDF)
Buy & Store Grain License Application (PDF)
Grain Bond Form (PDF)
Forms and Resources are available at Grain Licensing
Gross annual Grain Purchases (GAGP) First Location Additional Location
Less than $100,000 $140 $110
$100,000 to $750,000 $275 $110
$750,000 to $1,500,000 $415 $220
$1,500,000 to $3,000,000 $550 $220
$3,000,000 or More $700 $220
Period of Issuance:
July 1 - June 30
Length of Determination: 4 days to 4 months.
License Detail URL:
Online list of licensed grain buyers and grain elevators