The goal of the Commodity Warehouse Program is to ensure the security of grain and beans held in safekeeping for Colorado producers and owners, and to assure them they will receive just compensation for their products, thus fostering a stronger agricultural economy and lower food prices for all consumers.
This Program performs audits and inspections of all licensed commodity warehouses within Colorado. Thus, assuring producers that commodities held in bailment or under a negotiable warehouse receipt are being properly stored.
If you only wish to buy and sell grain, you need a Commodity Handler License.
If you wish to store grain for the public (operate a Public Warehouse), there are requirements in addition to obtaining a Commodity Handler License as listed below.
Commodity Handler License
To obtain a Commodity Handler license, the applicant must submit an application, pay license and inspection fees, submit a financial statement and post a surety bond. See the steps below:
- A handler must first obtain a bond. See the bonding schedule to determine the bond amount you will be required. There are two options that meet bonding requirements
- Surety Bond through your insurance
- Letter of Credit through your bank (refer to rules regarding the use of a letter of credit) The ILC Rider can be used to amend an existing Letter of Credit.
If you are conducting business as an Individual/Sole Proprietor, you must fill out a Commodity Handler Citizenship Status Affidavit.
- Completely fill out the Commodity Handler License Application.
- The license fee is $150.00 annually with a license period of January 1 through December 31 of each year.
- The Commodity Handler Inspection fee is based on annual purchases of Colorado commodities. Refer to the fee schedule to determine your inspection fee.
- Submit a copy of your most current financial statement. Financial statements submitted in support of a license application are confidential. To maintain confidentiality, please submit a financial statement to the attention of Leif Jacobsen at our office.
Return the original bond, affidavit, application, and fees to our office.
The additional requirements for operating a Public Warehouse are:
- Have a facility suitable for storing commodities and have the capability to weigh, grade, receive and load out commodities.
- Must submit proof of insurance in an amount sufficient to protect the storage obligations of the warehouse.
- Public Warehouses must have a net worth equal to twenty-five cents per bushel of their licensed capacity for grain and $1.25 per hundredweight of their licensed capacity for beans.
- The Public Warehouse Inspection fee is based on the license capacity of the warehouse. Refer to the fee schedule to determine your inspection fee.
Public Warehouses should refer to the bond schedule to determine the proper bond amount based on net worth and license storage capacity.