Obtaining a USDA license is an essential step for individuals and businesses involved in activities such as breeding, selling, or exhibiting animals covered under the Animal Welfare Act (AWA). Whether you’re planning to start a commercial breeding operation, open a petting zoo, or transport animals across state lines for compensation, you’ll need to understand how much a USDA license costs, the process to apply, and the ongoing financial and regulatory obligations that come with maintaining one. The cost of a USDA license varies depending on several key factors, including the type of license, the number of animals, and the nature of the activities involved.
Types of USDA Licenses
The U.S. Department of Agriculture offers several types of licenses under the Animal and Plant Health Inspection Service (APHIS). These licenses are generally divided into three main categories
- Breeder License– Required for those who breed regulated animals for sale, especially for use in research, teaching, testing, or as pets.
- Dealer License– Required for individuals or businesses who sell or transport animals for compensation.
- Exhibitor License– Required for those who exhibit animals to the public, such as zoos, circuses, or educational programs.
The type of license determines not only the responsibilities of the license holder but also influences the cost. Each license type has its own fee structure based on annual revenue or the scale of operation.
Cost of Obtaining a USDA License
The fee for a USDA license is not fixed; instead, it is calculated based on your reported income or the number of animals involved. The USDA uses a tiered fee system that changes each year depending on inflation and agency adjustments. Generally, the cost can range anywhere from $40 to several hundred dollars per year. Here’s a breakdown of what you might expect
Application Fee
To apply for a USDA license, you must pay a non-refundable application fee. This fee is usually around $10, regardless of the type of license. However, it’s just the beginning of the total licensing cost.
Annual License Fees
After submitting your application and passing a pre-license inspection, you’ll be required to pay an annual license fee based on your business activity. Below is a general fee structure for USDA licenses
- For businesses with under $500 in regulated activity income around $40 annually
- Between $500 and $2,000 around $85 annually
- Between $2,000 and $10,000 around $185 annually
- Over $10,000 in activity income fees can go up to $500 or more
The USDA provides a fee calculator that helps applicants determine their expected license fee based on their gross income from regulated activities. The more animals or revenue you generate, the higher the fee bracket you will fall into.
Inspection Requirements
Before you can be issued a license, you must pass a facility inspection conducted by a USDA inspector. This inspection ensures that you are in compliance with the Animal Welfare Act and that your facility provides proper care, housing, and sanitation for animals. There is no extra charge for the inspection itself, but failing it could delay your license approval and result in additional costs to address deficiencies.
Additional Costs to Consider
Beyond the base license fee, there are other costs associated with maintaining USDA compliance
- Veterinary Care– License holders must ensure that animals receive regular and emergency medical care, often requiring the services of a licensed veterinarian.
- Facility Upgrades– To meet USDA standards, you may need to invest in structural improvements like proper enclosures, heating, ventilation, and waste disposal systems.
- Recordkeeping– Maintaining detailed records of animal acquisitions, births, deaths, and veterinary treatments is mandatory, and some businesses invest in specialized software or staff training.
These ongoing obligations mean that the true cost of holding a USDA license can be much higher than just the application and annual fees.
Renewal and Compliance
USDA licenses must be renewed annually. Licensees are required to submit updated information about their operations and pay the applicable fee each year. In addition, USDA inspectors may conduct unannounced visits to ensure ongoing compliance. Failure to comply with USDA regulations can result in fines, suspension, or revocation of the license.
Late Renewals and Penalties
Renewing your license late can lead to additional penalties or require you to start the application process over again. It’s important to keep track of expiration dates and respond promptly to USDA notices.
Who Needs a USDA License?
Not everyone who owns or breeds animals needs a USDA license. The USDA license is only required for those involved in regulated commercial activities involving certain animal species, including dogs, cats, rabbits, nonhuman primates, and more. You may not need a license if
- You breed only one or two litters per year and sell pets directly to the public without intermediaries.
- You do not exhibit animals for payment or do not engage in interstate animal transport for compensation.
- Your activities fall under a USDA exemption or hobby breeder status.
However, those engaged in larger-scale breeding, transportation, dealing, or public exhibition must have a valid USDA license.
Why a USDA License Matters
Having a USDA license adds legitimacy to your business and builds trust with customers and regulatory bodies. It shows that you adhere to humane treatment standards and meet federal regulations. This can be especially important for businesses that sell animals across state lines or interact with research institutions and educational facilities.
Public Records and Transparency
USDA license holders are part of a public registry, which means the public can view basic information about your business, including past violations or inspection results. Maintaining a good compliance record can be essential to your reputation and business success.
The cost of a USDA license varies depending on the scale and nature of your business. While the starting fees may seem manageable, the total cost including compliance, inspections, and facility maintenance can be much higher. Whether you’re a breeder, dealer, or exhibitor, understanding all aspects of USDA licensing is essential before launching or expanding your animal-related operation. Planning ahead and budgeting accordingly can help ensure long-term success and avoid regulatory issues down the line.