You will need a livestock dealer license if you will be doing any of the following:
Operating as a Livestock Auction Market. A livestock auction market is any livestock congregation point where livestock are accepted on consignment and the auction method is used in the marketing of the animals. Please note that a public auction of farm goods by a farmer is not included in this definition of a livestock auction.
Operating a Collection Point. A Collection Point is a place where livestock are congregated for future movement to market or to be purchased by the owner or agent of the facility for movement for direct slaughter. A collection point does not involve auction of animals.
Operating a Buying Station. A Buying Station is any stockyard or concentration point, other than a public stockyard, at which livestock is brought and sold or assembled for shipment to a packing plant or a public stockyard, or graded or weighed for the purpose of establishing a basis for sale or reshipment.
Operating a Horse Auction. A horse auction is a livestock market where only horses, ponies, donkeys, or mules are offered for consignment.
Are operating as an Agent. An Agent is any person, firm, association, copartnership or corporation buying, receiving, selling, exchanging, transporting, negotiating or soliciting sale, resale, exchange, transportation or transfer of any animals for on behalf of someone.
Operating as a Dealer or Broker. A Dealer or Broker is any person, copartnership, association, or corporation engaged in the business of buying, receiving, selling, exchanging, transporting, negotiating, or soliciting sale, resale, exchange, transportation or transfer of any such animals. Please note that this includes livestock trucking businesses.
Please note that the following are exempt and do not need a Livestock Dealer License:
Any railroad or airline transporting animals.
Any person, association, co-partnership, or corporation who or which, by dispersal sale, is permanently discontinuing the business of farming dairying, breeding, or feeding animals.
Any person, association, copartnership, or corporation selling animals which have been raised on their premise.
Any butcher, packer, or processor to whom animals are delivered for slaughter or that part of the business of a farmer which consists of buying or receiving animals for feeding, grazing, and feeding purposes and the sale or disposal of such animals after feeding or grazing of not less than 21 days.
Terminal livestock markets that are agricultural research service of the United States Department of Agriculture veterinary inspection is daily maintained.
Occasional held consignment sales such as breed, 4-H, FFA sales.
What fees are required in order to operate as a Livestock Dealer in Michigan?
Class I (Livestock Auction) $400
Class II (Collection Point or Buying Station) $250
Class III (Horse Auction) $150
Class IV (Dealer (includes trucking companies), Broker, Agent) $50
How Do I apply for a Livestock Dealer License?
Familiarize yourself with the laws and regulations governing Livestock Dealers:
Arrange bonding from Packers and Stockyards at 515/323-2579. If you will be operating a livestock auction and are applying for the first time, you must be bonded for a minimum of $25,000. If you are operating a livestock auction, your bonding will be based on the average gross weekly sales from the previous license year. In accordance with state law, MDA must be listed as the Trustee or Beneficiary for the bond.
Download and review the License Application. Fill out the application. Be sure to fill out all fields. If a section is not applicable, please put a line through that section. Please note that a trucker falls under Class IV. (Click here for aid in completing the application from.)
Submit the completed application, proof of bonding (you only need to submit proof of bonding if you will be operating a livestock auction), and a check or money order for the license fee(s) payable to State of Michigan to: Michigan Department of Agriculture, Animal Industry Division, PO Box 30776, Lansing, MI 48909-8276.
If you are applying for a Class IV license, a license will be issued once a completed application is received and processed by the department. However, if you are operating a Class I, Class II, or Class III license, a Michigan Department of Agriculture (MDA) employee will contact you to verify that your facility is ready for inspection once a completed application (and bonding, if applicable) has been received and processed. If the facility is ready for inspection, a MDA inspector, typically a Field Veterinarian, will then contact you to set-up and conduct a pre-licensing inspection of the facility.
Upon completion of the pre-licensing inspection, the inspection report is sent to the Lansing office for a manager's review. Once the facility has passed inspection and managerial review, a Livestock Dealer License will be issued and mailed. Please note that if there are problems found either by the inspector or the manager, you will be given suggestions for improvement as well as a re-inspection date.
After receiving the license, you may then operate as a Livestock Dealer.
How long does it take to process my first-time application?
MDA strives to provide a timely response to Livestock Dealer applications. Typically it takes 4-8 weeks to receive a registration.
Processing may take considerably longer if your application is incomplete for any of the following reasons:
Portions of the application are left blank. A letter and a copy of the application will be returned to the sender with the blank fields marked. Please be sure to include the names of all agents if there are to be agents under the license, the truck and trailer license information if you will be operating a trucking service, and a business phone number. The application will not be processed until the form has been completed in its entirety and returned.
The application is received without the license fee. A letter and a copy of the application will be returned to the sender. The application will not be processed until the form has been returned with the correct fee.
Payment is received without an application. MDA collects fees for many different types of licenses and fees. Any funds that are sent to MDA are received initially by the department's finance office. The type of application accompanying the funds tells the cashier to which of several divisions or programs to forward the materials. If there is no application, the money may be forwarded to another division. If the Animal Industry Division receives a copy of the check, the division will send out an application with a letter to the address sited on the check. The application will not be processed until the department receives the completed application.
Proof of bonding is not received and you are applying for a Livestock Auction. A letter and a copy of the application will be returned to the sender. The application will not be processed until bonding has been received.
If you will be operating a livestock auction, horse auction, collection point, or buying station, your license can not be issued until you pass an inspection. As such, your license may also be delayed if your facility does not pass inspection or is not fully constructed. If your facility does not pass inspection, the department will provide feedback at the time of inspection for improvement as well as a re-inspection date.
You can help speed the processing of your application by being sure your application is complete and includes the correct fee; by thoroughly reviewing the laws, regulations, and other documents provided here; and by making sure your facility is constructed and ready for inspection.
If we have sent in an application, when can we begin operating a Livestock Dealer License?
Once you receive your license from MDA, you may then begin to operate as a Livestock Dealer. You must not operate a livestock or horse auction market, collection point, buying station until you have received your license. In addition, you must not operate as a dealer (including transport livestock), agent, or broker until you have received your license.
When does my Livestock Dealer License expire?
You Livestock Dealer License expires yearly on September 30th. As it is against the law to operate without a license, you must renew your license prior to September 30th.
Is there anything I can do to speed the issuance of my license?
You can help speed the processing of your application by being sure your application is complete and includes the correct fee and submission of bonding documentation (if applicable); by thoroughly reviewing the laws, regulations, and other documents; and by making sure your facility is constructed and ready for inspection.
What is an Annual Market Report?
If you operate a livestock auction market, each year you must submit a copy of the average weekly sales for the past year as well as a the number and kind of livestock species auctioned over the past year. This report is called the Auction Market Annual Report. This report must be received by the department no later than March 31 of the year following the year for which the sales information was compiled. You will receive a mailing each year, typically in December, reminding you of the need to submit this information as well as a copy of the Department's reporting form. Please note that this form must be notarized. This form will be used to verify that you are adequately bonded. The Livestock Dealer Bonding Formula should be referenced to complete the Auction Market Annual Report form.
What should I do if there are changes in agents or company ownership, name, or address?
A business is issued a license. If there is a change in business address or ownership, the license does not transfer. As such, the license for the old address/owner becomes inactive. When such a change occurs, the applicant must notify the department within 5 days after that change. You must submit a new application and license fee immediately. We will need to conduct a new inspection (if Livestock Auction, Horse Auction, Collection Point, or Buying Station) to make sure that the facility meets the requirements of the regulations. In addition, we will review the requirements with the new owner at the visit. Once the facility has passed inspection and licensure has been approved by the program manager, a license will be issued for the new business location or owner. Once the license is received, the business may then operate as a Livestock Dealer. Please note that Class IV (Dealer, Broker, Agent) does NOT need to submit a license fee if there is a change in address. However, they still must submit an updated application.
If your business changes its business name under which it is licensed, but remains under the same ownership and address, please submit a completed copy of the application reflecting the changes immediately so that the license and records can be updated accordingly. You will receive an updated license in the mail reflecting the change.
Likewise, if you have had a change in agent's currently authorized to conduct business under your license, please submit a completed copy of the application reflecting the change immediately so that the license, and records can be updated. You will be issued a new license, and new agent cards if you have added additional individuals.