AGRICULTURE/GRAIN: Provides for the assessment rate on agricultural commodities for the Grain and Cotton Indemnity Fund (EN +$626,130 SD RV See Note)

2026 Regular Session Introduced by Rhonda Butler

Increases the regulated agricultural commodity assessment from 0.04% to 0.08% at first sale to fund the Grain and Cotton Indemnity Fund.

Effective date: 05/15/2026.

Purpose and Intent

HB 370 seeks to increase the assessment rate on the value of all regulated agricultural commodities sold to grain dealers and cotton merchants, which funds the Grain and Cotton Indemnity Fund.

The bill amends and reenacts statute R.S. 3:3412.1(B) to implement the higher rate and clarifies payment timing.

Key Provisions and Changes

Assessment Rate Increase:

Current law: 1/25 of 1% (0.04%) on the value of regulated agricultural commodities.
Proposed law: 2/25 of 1% (0.08%) on the value of regulated agricultural commodities.

Applicability: Applies to all regulated agricultural commodities sold to grain dealers and cotton merchants.

Collection Timing: The assessment is due and payable to the Louisiana Agricultural Finance Administration (the “commission”) by the licensee at the first point of sale.

Legal Citations: Amends and reenacts R.S. 3:3412.1(B).

Effective Date: The act becomes effective upon the governor’s signature or, if not signed, upon lapse of time for gubernatorial action; if vetoed and subsequently approved by the legislature, effective the day after approval.

Who is Affected

Licensees/Regulated Entities: Producers and sellers of regulated agricultural commodities who interact with grain dealers and cotton merchants will pay the increased assessment.

Grain Dealers and Cotton Merchants: Their purchasing transactions trigger the assessment at the point of first sale.

Grain and Cotton Indemnity Fund: The fund’s revenue source would increase due to the higher assessment, potentially affecting the level of indemnity available or timing of reimbursements (subject to fund rules).

Procedural and Timeline Notes

The bill passed through the standard legislative process in 2026:

Read and referred to committee, reported favorably, and advanced to floor votes in both chambers.
House action culminated with final enactment and transmission to the Senate; Senate passed with unanimous votes (as indicated by the record).
The date of enactment depends on governor action as described above.

The bill’s text specifies the precise rate change and the collection point, ensuring administrative clarity for licensees and the commission.

Practical Impact and Considerations

The total annual revenue for the Grain and Cotton Indemnity Fund would increase proportionally to commodity values if volumes remain steady, improving indemnity funding capacity.

Stakeholders may evaluate the trade-off between higher funding for indemnity programs and the increased cost burden on producers and sellers at the first point of sale.

Administrative processes will require updated guidance to reflect the new rate and ensure timely collection at the point of sale.

If you’d like, I can provide a side-by-side comparison of current law and HB 370 language, or model the potential fiscal impact given hypothetical volume and price scenarios.

Bill