Grain Dealer License Class 1
About
“Commodity Dealer” means any person engaged in the business of buying commodities (stored grains such as corn, soybeans and wheat) from TN producers for resale, brokering, milling or processing.
A producer of commodities buying commodities for the producer's own use shall not be considered as being engaged in the business of buying commodities for resale, milling or processing.
Class 1 Dealer - Buying in excess of $500,000 of grains annually from TN Producers.
Requirements
Annual Financial Statements.
Minimum Basic Security of $20,000 to a Basic maximum of $100,000 based on 10% of annual purchases plus proof of property insurance.
Additional Extra Security is required on all Price Later Contracts, Delayed Payment Contracts or any commodity that is not paid within 30 day of receipt. 80% of such late payments are to be secured to an overall maximum of $500,000
Fees
Class 1 Dealer License - $150 Annual Application Fee
Additional
Security may be in the form of a Bond, an Irrevocable Letter of Credit or a Certificate of Deposit with a State or Federally Licensed Bank.
Any TN Licensed Warehouse is also considered to be a Dealer.
For more information on Grain Licensing or the Tennessee Commodity Indemnity Fun contact Evan Boyd at 731-514-5708 or Evan.Boyd@tn.gov