South Dakota State implemented a new law affecting grain buyers within said state. The new law is titled SB 55 and boosts the quantity of the surety bond required in relation to licensure as a grain buyer. Under the present law, there are two license classifications, Class A and Class B. A surety bond is required for both and is calculated by a rolling average of the dollar amount of grain that the buyer purchased in South Dakota throughout the last three calendar years. The surety bond is applicable to all grain purchases for all of the buyer’s business sites.
Under SB 55, the quantities and thresholds for a Class A License now are like so:
New Dollar Thresholds Increased Bond Amount
<$2,000,000 No Change
$2,000,001 – $10,000,000 $100,000
$10,000,001 – $25,000,000 $200,000
$25,000,001 – $60,000,000 $350,000
$60,000,001 – $100,000,000 $500,000
For a Class B License, the new law amplified the amount of the surety bond required for purchasers making buys between $2,000,001 and $10,000,000 from a $75,000 surety bond under the previous law to a bond in the quantity of $100,000 under SB 55.