Also known as: agricultural liens
Written by attorneys · grounded in primary & secondary sources — see below
A nonpossessory statutory interest in farm products that secures payment or performance of an obligation for goods or services furnished in connection with a debtor's farming operation or for rent on real property leased for farming. The interest arises under a statute other than Article 9 and remains effective without possession by the lienholder.
Audrey Ashton buys a load of corn from farmer Adrian Aguilar without knowing that AgriGrow Corp. holds an agricultural lien for unpaid fertilizer. Audrey pays value and takes delivery before any financing statement is filed. The lien does not bind Audrey.
Alliance Holdings supplies seed to Amelia Amari under a state statute creating an agricultural lien on her soybean crop. The statute's requirements for perfection are met the day the seed is delivered. The lien is perfected from the moment it becomes effective.
Aether Technologies holds an agricultural lien on Anika Anand's wheat that was first perfected by possession. It later files a financing statement covering the same crop. The lien remains continuously perfected with no gap in protection.
Select any source to read its text and confirm it supports the definition.
Arcadia Retail claims an agricultural lien on Albert Allen's livestock for unpaid feed. No financing statement is filed. The lien is unperfected and vulnerable to later competing claims.
Aisha Ahmed obtains a judgment lien on crops subject to an unperfected agricultural lien held by Ashford Manufacturing. The judgment lien arises before any filing occurs. The agricultural lien is subordinate.
Adrian Aguilar sells his liened cattle to a third party without authorization from the agricultural lienholder. The lien continues in the cattle in the buyer's hands because the secured party never released it.
Yes. Article 9 expressly applies to agricultural liens and supplies the rules for their perfection and priority even though they arise by statute rather than by contract.
An agricultural lien is perfected when it becomes effective and the requirements of Section 9-310 are satisfied, including the filing of a financing statement unless an exception applies.
Yes. The lien continues in the collateral after any disposition unless the lienholder authorized the disposition free of the lien.
A buyer who gives value, takes delivery, and lacks knowledge of the lien takes the goods free if the lien is unperfected at the time of the purchase.