The Iowa Seed Permit Holder Bond is a $25,000 performance bond required under Iowa Code § 199.16 for seed permit holders who enter into above-market repurchase contracts with Iowa growers. This bond ensures that permit holders fulfill their contractual obligations to repurchase seed at the agreed-upon price, protectin…
Overview
What it is.
The Iowa Seed Permit Holder Bond is a $25,000 performance bond required under Iowa Code § 199.16 for seed permit holders who enter into above-market repurchase contracts with Iowa growers. This bond ensures that permit holders fulfill their contractual obligations to repurchase seed at the agreed-upon price, protectin…
Who usually needs it
Seed permit holders in Iowa who contract with Iowa growers to purchase agricultural seed, do not furnish seed stock at no cost, and agree to repurchase the produced seed at a price exceeding the current market price. This bond protects growers who enter into these specialized seed production and repurchase contracts.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateIABond amount$25,000ObligeeIowa Department of Agriculture and Land Stewardship (IDALS)Bond classLicense BondCategoryAgricultureBondSeed Permit Holder BondPlain descriptionThe Iowa Seed Permit Holder Bond is a $25,000 performance bond required under Iowa Code § 199.16 for seed permit holders who enter into above-market repurchase contracts with Iowa growers. This bond ensures that permit …Who needs this bondSeed permit holders in Iowa who contract with Iowa growers to purchase agricultural seed, do not furnish seed stock at no cost, and agree to repurchase the produced seed at a price exceeding the current market price. Th…
FAQ
Common questions.
Who needs the Iowa Seed Permit Holder Bond?
You need the Iowa Seed Permit Holder Bond if you hold a seed permit in Iowa and enter into contracts with Iowa growers that meet all three conditions: (1) you contract to purchase agricultural seed from the grower, (2) you do not furnish seed stock to the grower at no cost, and (3) you agree to repurchase the produced seed at a price exceeding the current market price. This bond is required under Iowa Code § 199.16 and must be filed with IDALS before entering into such contracts.
What is the bond amount for the Iowa Seed Permit Holder Bond?
The Iowa Seed Permit Holder Bond amount is fixed at $25,000. The surety's aggregate liability under this bond does not exceed $25,000, regardless of how many contracts you have with growers. The bond is a continuing obligation that remains in effect until canceled by the surety with 60 days' certified mail notice to both the principal and IDALS, though liability continues for existing contracts.
What happens if a seed permit holder fails to honor a repurchase contract?
If a seed permit holder fails to honor their contractual obligation to repurchase seed at the agreed-upon above-market price, the Iowa grower can file a claim against the Seed Permit Holder Bond. The surety will investigate the claim and, if valid, compensate the grower for their financial loss up to the $25,000 bond limit. The bond acts as a financial guarantee protecting growers from permit holders who breach their repurchase agreements.
