AGRICULTURE/GRAIN: Provides relative to the Grain and Cotton Indemnity Fund (EN NO IMPACT See Note)

2026 Regular Session Introduced by Kim Coates

Raising the GCIF suspension and resumption balance triggers to 25 million and 22 million respectively gives LAFA longer periods without new assessments while preserving end-of-year

Effective date: 05/11/2026.

Purpose and Intent

HB 344 amends and reenacts provisions governing the Grain and Cotton Indemnity Fund (GCIF) and the related administrative role of the Louisiana Agricultural Finance Authority (LAFA).

The core aim is to adjust the balance thresholds that trigger suspension and resumption of assessments (fees) collected for the GCIF and to allocate year-end fund balances more explicitly to LAFA.

Key Provisions

1) Revisions to Suspension and Resumption Triggers

Current law:

Suspension of GCIF assessments occurs when LAFA balance reaches $12 million or more.
Resumption of assessments occurs when the balance falls below $10 million.
Any assessments collected after reaching $12 million but before suspension remain with LAFA.

Proposed changes in HB 344:

Suspension threshold raised from $12 million to $25 million.
Resumption threshold raised from $10 million to $22 million.
Also increases the balance level at which assessments collected prior to suspension must remain within LAFA from $12 million to $25 million.

2) Allocation of Year-End Balances

Present law requires all unspent GCIF monies at the end of a fiscal year to be transferred to LAFA.

HB 344 preserves the transfer of unspent GCIF monies to LAFA but shifts how and when balances are measured for suspension/resumption purposes, using higher thresholds as noted above.

3) Effective Date

The act becomes effective upon the governor’s signature or, if not signed, the expiration of the time for gubernatorial action (as provided by Louisiana Constitution). If vetoed and subsequently approved by the Legislature, it becomes effective the day after approval.

Who/What Is Affected

GCIF and its operations: The pool of funds used to indemnify grain and cotton producers.

LAFA (Louisiana Agricultural Finance Authority): The agency that holds and manages unspent GCIF funds and implements the assessment collection program.

Assessments/Fees: The schedule and triggers for collecting assessments tied to GCIF financing will be adjusted; higher balance triggers may affect the timing of collections.

Procedural and Timeline Highlights

The bill amends R.S. 3:3412.1(E) and sets new thresholds for suspension and resumption of GCIF assessments.

Effective date tied to gubernatorial action (standard Louisiana enactment timing).

Legislative history shows passage through the House and Senate with sponsor Coates and a co-sponsor, and an effective date dependent on executive action.

Practical Impact

With higher balance thresholds ($25 million for suspension and $22 million for resumption), the GCIF will likely experience longer periods without new assessments during fiscal years when LAFA holds larger balances.

The requirement to transfer end-of-year GCIF balances to LAFA remains, but the operational impact centers on when and how aggressively assessments are collected, now based on higher target balances.

Overall, the reform aims to provide LAFA with greater latitude in managing end-of-year funds while maintaining a mechanism to fund indemnity activities if balances dip.

If you’d like, I can provide a side-by-side comparison of current law vs. HB 344 language, or draft a one-page briefing for stakeholders.

Bill