Also known as: agricultural lien · ag lien · UCC agricultural lien
Written by attorneys · grounded in primary & secondary sources — see below
A nonpossessory interest in farm products arising under statute in favor of a supplier of goods or services used in farming operations to secure payment for those goods or services. The interest is effective against buyers and other third parties once perfected under the rules governing secured transactions.
AgriGrow Corp supplies fertilizer to Lopez on credit and obtains a statutory agricultural lien on the resulting crops. Lopez sells the crops to Greenfield Development LLC, which pays value and takes delivery without knowledge of the lien. Greenfield takes the crops free of AgriGrow's unperfected agricultural lien.
Pioneer Feeds supplies feed to hog farmer Carl Mason under a state statute creating an agricultural lien on the hogs. Pioneer satisfies the effectiveness requirements and files a financing statement covering the livestock before any other creditor acts. The lien is perfected upon effectiveness and takes priority over later interests.
Select any source to read its text and confirm it supports the definition.
A state statute grants Plains Equipment an agricultural lien on Caleb's equipment for unpaid repairs. Plains Equipment first perfects by possession and later files a financing statement covering the same collateral. The lien remains continuously perfected without any gap in protection.
AgriGrow Seeds obtains a statutory agricultural lien on Ethan's crops for unpaid seed. AgriGrow fails to file a financing statement as required to perfect agricultural liens. The unperfected lien is subordinate to a later perfected security interest in the same crops.
GreenGrow Seeds records an agricultural lien on Evan's cropland for unpaid supplies. Prairie State Bank later obtains a judgment lien on the same land before GreenGrow perfects its agricultural lien. The bank's lien creditor status gives it priority over the unperfected agricultural lien.
A statutory agricultural lien attaches to Antonio Alvarado's wheat crop. Alvarado sells the wheat to a buyer without the lienholder's authorization to release the lien. The agricultural lien continues in the wheat in the buyer's hands.
Agricultural liens arise under separate state statutes rather than by agreement between the parties. Article 9 governs their perfection and priority but does not create the liens themselves.
An agricultural lien is perfected when it becomes effective under its creating statute and the requirements of Section 9-310 are satisfied, typically by filing a financing statement.
A buyer of goods takes free of an agricultural lien if the buyer gives value, receives delivery, lacks knowledge of the lien, and the lien is unperfected at the time of the purchase.
An agricultural lien continues in collateral after a sale or other disposition unless the lienholder authorized the disposition free of the lien.