Livestock (Packers and Stockyards) Surety Bonds

Anyone engaged in the business of marketing livestock, meat and poultry for commercial purposes is subject to the Packers and Stockyards Act of 1921. Regulated entities include stockyard owners, market agencies, dealers, packers, swine contractors and live poultry dealers. A business may be classified as the following:

Market Agency

  • Buys or sell livestock on a commission basis


  • Furnishes stockyard services


  • Buys and sells livestock either on its own account or as the employee or agent to the vendor or purchaser


  • Buys livestock for slaughter
  • Manufactures or prepares meats or meat food products for sale or shipment


  • Markets meats, meat food products, or livestock products in an un-manufactured form acting as a wholesale broker, dealer, or distributor

Live Poultry Dealer

  • Purchases live poultry
  • Obtains live poultry under a poultry growing arrangement for slaughter or sells it for slaughter by another

Swine Contractor

  • Obtains swine under a swine production contract for slaughter or sells it for slaughter by another

Per the Act, market agencies, dealers and packers with annual livestock purchases of over $500,000 must register with the United States Department of Agriculture – Grain Inspection, Packer and Stockyards Administration (PSA) and submit and maintain a surety bond before operating. This surety bond ensures that the principal conducts business in an ethical manner, complies with all federal regulations and disperses all funds properly. If a harmed party files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal.

Livestock (Packers and Stockyards) Surety Bonds have a minimum bond amount of $10,000. The bond amount is the average dollar value of business conducted in two business days and is based on the annual livestock report the principal is required to submit, per the PSA. It is recommended that you consult the PSA for your specific needs prior to bonding.

Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.

Pacific Surety Proudly offers Livestock (Packers and Stockyards) Surety Bonds in the following states:

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