Louisiana Grain and Cotton Indemnity Fund

State indemnity fund (LA R.S. 3:3412.1) that compensates Louisiana producers for losses when a licensed grain dealer or cotton merchant becomes insolvent and fails to fully pay for delivered grain/commodities. Financed by mandatory assessments (0.0004%, i.e. 1/25 of 1%) on the value of commodities sold to licensed dealers/merchants. This is an INDEMNITY (triggered by dealer insolvency), not a competitive grant. Currently active: on Nov 20, 2025 the Louisiana Agricultural Commodities Commission declared Hansen-Mueller Co. insolvent and opened the fund; producers not fully paid may file claims, with priced/delivered grain prioritized.

Louisiana producers who delivered grain or agricultural commodities to a licensed dealer/merchant that became insolvent and did not fully compensate them per the sale.

An indemnity payout tied to what the producer is actually owed — not a fixed award and not a competitive grant. LDAF states that "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." No per-producer cap, percentage of loss, or deductible is published on the program page, the press release, or the claim packet.

Eligibility is triggered by the dealer's failure to pay: "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." For the open Hansen-Mueller event, "claims for delivered and priced grain will be prioritized."

What producers pay in: the fund is financed by a mandatory assessment on their own sales, not by an application fee. "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%)."

The condition most worth knowing before filing: accepting fund money assigns your claim against the dealer to the state. The sworn Proof of Loss reads, "I acknowledge that receipt of funds from the Grain and Cotton Indemnity Fund requires subrogation of claims I may have against the licensee in favor of the Louisiana Agricultural Commodities Commission pursuant to La. R.S. 3:3412.1(L). I understand that if I receive payment from the licensee following receipt of GCIF funds, I shall remit the payment to the Louisiana Department of Agriculture and Forestry to reimburse the Grain and Cotton Indemnity Fund." The Proof of Loss must be notarized and accompanied by a worksheet and supporting documentation.

File a claim with LDAF. For the active Hansen-Mueller event, submit to hmclaims@ldaf.state.la.us; general fund questions to Agro-Consumer Services.