FAQs - Hay Dealer

Q: What is a Farm Products (Hay) Dealer's License?

A: The license required to purchase or broker hay from Colorado producers, owners and dealers for resale or processing.

Q: Is a dealer license required for all Hay purchases?

A: No, hay purchase for your own use does not require a farm products dealer license.

Q: When are you required to have a Hay Dealer License?

A:

  • When you purchase hay from Colorado owners or producers for resale or processing; or
  • When you solicit or negotiate sales of hay (broker) between the seller and purchaser; or
  • When you receive on consignment or solicit hay for sale on commission; or
  • When you accept hay in trust from the owner for resale; or
  • When you sell or handle hay for the account of or as an agent of the owner; or
  • When you purchase hay for a commercial feeding operation which feeds more than 2500 head at any one time that are not wholly owned by the feeder.
Q: What is required to become a Licensed Hay Dealer?

A:

You may be exempt from the required bond or irrevocable letter of credit (but not the required license) if you pay in cash at the time you take possession of the livestock. Cash is U.S. currency, certified check, cashier's check, or postal or Western Union money order. You must fill out and sign a Cash Buyer's Affidavit, which is included on your application each year, to receive this exemption.

You may substitute a USDA Packers and Stockyards Administration bond for the required state bond.

Q: What are the panalties for not licensing?

A: Acting as a dealer without having a license is a Class 6 Felony.

  • Civil fines of up to $1000 per day may be issued for violations of the Act.
  • Cease and Desist Orders may be issued to individuals or companies violating the Act.
  • Court injunctions may be imposed for violations of the Act.
Q: Who is protected by the dealer license?

A: Colorado owners, producers and/or dealers who sell hay.

Q: What do I need if I am an agenct for a licensed dealer?

A:

  • You will need an agent's license.
  • Application for the agent's license must be endorsed by the licensed dealer and sent with the $25.00 fee to the Department.
  • An agent's license will expire when the dealer's license expires.
Q: When is a small volume dealer license an option?

A: If you meet all of the following:

  • Purchase less than $20,000 worth of hay a year;
  • Have no single purchase transaction over $2,500;
  • Have a fixed or established place of business in Colorado;
  • Do not purchase hay for commercial feeding;
  • Do not broker, act as an agent or buy and/or sell hay on commission.
  • If you feel you qualify as a Small Volume Dealer, contactthe Department for application. The application fee is $25.00 and no bond is required. You will have to maintain certain records as required by the Department.
Q: Does the dealer license cover purchases of other types of farm products?

A: Yes, except for grains and dry edible beans, which require a separate license.

Q: What if I have questions?

A: Email or call the Farm Products Program at (303) 477-0054