Do I need a Grain Warehouse License or a Grain Dealer License? A Grain Warehouse license is for a business that buys, sells and stores grain. A Grain Warehouse license can only be issued to a business that has grain bins and/or warehouses to store grain. A Grain Dealer license is for people who buy & sell grain
only and they have no ability to store or handle grain. A grain dealer buys grain from producer/owners, handles all monies from the sell of the grain and pays the producer/owner.
A Grain Dealer license is required for any business or individual who purchases grain from any farmer/producer or Grain Warehouse in Arkansas. An Arkansas Grain Dealer license is not required if you are one of the following: State Licensed Grain Warehouse, Federal Grain Warehouse or an end user of the grain that is purchased. The intent of this license is to give some protection to all grain owners who sell grain through a grain merchandizer.
The following documents are required by law to obtain a Grain Dealer License:
1. A completed application (GD-1) for license to operate as a grain dealer. A newly organized company must submit ($150.00) with their application. An existing grain dealer must submit ($250.00) with their application.
2. A) A newly organized Grain Dealer merchandizer is only required to submit a beginning trial balance sheet prepared and submitted by a CPA/RPA to our office.
B) An existing Grain Dealer merchandizer must have a CPA/RPA complete all of the following:
a. Compilation Balance Sheet Statement or greater
b. Income and Expense
c. Schedule of Notes Payable
d. Statement of Cash Flows
All financial requirements must be emailed to our agency by the CPA or RPA, or you may submit a bound copy that the CPA/RPA has prepared for you.
3. The Certificate of Fact (GW/GD-3) must be completed and returned. This form must be signed by an authorized person and must be signed and stamped by a notary.
4. Enclosed is a Bond Form (GD-6), Letter of Credit Form (GD-7) and Certificate of Deposit form (GD-8). You must choose one of the above to provide a beginning surety of $50,000.00.
5. A regular Corporation must submit a Corporate Charter and a Limited Liability Company (LLC) must submit a Corporate Resolution.
After all the required items have been met, your Arkansas Grain Dealer License will be issued.