Louisiana Grain and Cotton Indemnity Fund
Fund to protect producers from losses if a licensed grain dealer or cotton merchant becomes insolvent and fails to fully compensate producers on delivered grain.
The Louisiana Legislature established the Louisiana Grain and Cotton Indemnity Fund (LA R.S. 3:3:3412.1) to protect producers from losses if a licensed grain dealer or cotton merchant becomes insolvent and fails to fully compensate producers on delivered grain.
The fund is financed through mandatory assessments on commodity sales. These assessments are a percentage of the value of all agricultural commodities grown in Louisiana and sold to licensed dealers and merchants. The assessment rate is 0.0004% (1/25 of 1%). When a producer has not been fully paid for their agricultural commodities due to a dealer's insolvency, the fund can pay the producer any compensation owed.
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On November 20, 2025, the Louisiana Department of Agriculture and Forestry’s (LDAF) Louisiana Agricultural Commodities Commission (LACC) declared Hansen – Mueller Co. insolvent and approved opening the Grain and Cotton Indemnity Fund (GCIF) to ensure Louisiana producers are compensated. In accordance with La. R.S. 3:3412.1(F), a producer shall be eligible to receive indemnity payments from the GCIF if the licensee, Hansen – Mueller Co., did not fully compensate the producer in accordance with a sale of agricultural commodities.
Claims for delivered and priced grain will be prioritized.
Contact info
Contact info
Related links
Press Release: LDAF opens the Louisiana Grain and Cotton Indemnity Fund