LDAF opens the Louisiana Grain and Cotton Indemnity Fund

News

Press release

For immediate release: November 20, 2025

The Louisiana Department of Agriculture and Forestry’s (LDAF) Louisiana Agriculture Commodities Commission (LACC) has declared Nebraska-based grain dealer Hansen-Mueller insolvent following the company’s filing for Chapter 11 bankruptcy on Monday, November 17. As a result of the company’s inability to pay claims, the LACC voted to open the Louisiana Grain and Cotton Indemnity Fund to ensure Louisiana producers are paid.

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.

“The Louisiana Grain and Cotton Indemnity Fund has proven to be a valuable insurance policy for Louisiana farmers, successfully shielding them from significant financial losses in this scenario,” said LDAF Commissioner Mike Strain, DVM. “We celebrate the success of this program in protecting our farmers’ investments and ensuring the stability of the grain industry in Louisiana.”

Commissioner Strain encourages all Louisiana grain producers who have worked with Hansen-Mueller to begin gathering relevant documentation, such as:

1. Records of the crops sold, including type, quantity, and quality.

2. Proof of sale and delivery, such as contracts, scale tickets, and settlement sheets.

3. Any correspondence with Hansen-Mueller regarding the unpaid grain.

If you are a grain producer owed compensation by Hansen-Mueller, please reach out to LDAF’s Agro-Consumer Services (ACS) Office at 225-935-2164 or by email at hmclaims@ldaf.state.la.us for instructions on submitting a claim. Be prepared to provide all necessary information to verify your claim.

About Hansen-Mueller Co. Hansen-Mueller Co. is a nationwide merchandiser and processor of grain with a diversified agribusiness platform with locations throughout the central United States. More specifically, the Company operates nine elevators, five across the Midwest along Interstate 29. Hansen-Mueller Co. also operates four port terminals: Duluth, Minnesota; Houston, Texas; Superior, Wisconsin; and Toledo, Ohio. Hansen-Mueller Co. further owns an oats processing facility in Toledo, Ohio. Additionally, Hansen-Mueller Co. leases and operates grain trading offices located in Toledo, Ohio; Omaha, Nebraska; Salina, Kansas; Kansas City, Missouri; Tallulah, Louisiana; Grand Island, Nebraska; and Alabaster, Alabama. The Company is headquartered in Omaha, Nebraska.