2006 Minnesota Statutes

514.945 AGRICULTURAL PRODUCER'S LIEN.
    Subdivision 1. Attachment. (a) A person who produces an agricultural commodity as
defined in section 17.90, subdivision 2, except grain as defined in section 232.21, subdivision 7,
and raw milk has a lien for the contract price or, if there is no contract the fair market value, of the
agricultural commodity produced by the person and delivered to a buyer. The lien attaches to the
agricultural commodity and products and proceeds of the agricultural commodity.
(b) If the agricultural commodity is or becomes commingled with other agricultural
commodities or goods, the lien continues in the proportionate share of the other agricultural
commodities or goods.
(c) If an agricultural commodity to which the lien attaches becomes manufactured or
processed to become part of another product, the lien continues and attaches to the product
manufactured or processed.
(d) An agricultural producer's lien does not attach to agricultural commodities:
(1) purchased by a marketing cooperative association; or
(2) purchased free of a security interest or lien as provided in United States Code, title 7,
section 1631, and sections 336A.01 to 336A.16.
    Subd. 2. Perfection. An agricultural producer's lien is perfected from the time the
agricultural commodity is delivered until 20 days after the agricultural commodity is delivered
without filing. An agricultural producer's lien may continue to be perfected if a lien statement
under subdivision 3 is filed in the appropriate filing office under section 336.9-501 by 20 days
after the agricultural commodity is delivered.
    Subd. 3. Lien statement. (a) A lien statement must be in writing and verified by the
producer and must contain:
(1) a statement of the amount due for the agricultural commodity after deducting applicable
credits and offsets;
(2) the name of the purchaser to whom the agricultural commodity was delivered;
(3) a description sufficient to identify the agricultural commodity delivered and subject
to the lien;
(4) the date and location to which the agricultural commodity was delivered; and
(5) the date when payment was due for the agricultural commodity subject to the lien.
(b) A lien statement is void and may be removed from the filing system six months after the
date of filing. The lien statement may be physically destroyed 30 months after the date of filing.
    Subd. 4. Priority. (a) An agricultural producer's lien has priority over all other liens and
encumbrances in:
(1) the agricultural commodity;
(2) proceeds from the agricultural commodity;
(3) the proportionate share of the agricultural commodities or goods with which the
agricultural commodity has been commingled; and
(4) the products manufactured or processed with the agricultural commodity.
(b) An agricultural producer's lien that is continuously perfected from the time of delivery
has priority over other liens and encumbrances whether they are filed before or after the
agricultural producer's lien.
(c) An agricultural producer's lien that is filed after 20 days after delivery of the agricultural
commodity has priority in the order it is filed.
(d) Priority among perfected agricultural producers' liens is according to the first lien filed.
(e) An agricultural producer's lien that is not perfected has the priority of an unperfected
security interest under sections 336.9-317 and 336.9-322.
    Subd. 5. Lien terminated. An agricultural producer's lien is terminated on:
(1) full payment for the agricultural commodity delivered;
(2) recovery of the agricultural commodity in kind; or
(3) the date six months after the agricultural commodity is delivered if an action to enforce
the lien has not been commenced.
    Subd. 6. Enforcement. The holder of an agricultural producer's lien may enforce the lien
in the manner provided in sections 336.9-601 to 336.9-628, subject to section 550.17. For
enforcement of the lien, the lienholder is the secured party and the person receiving the agricultural
commodity is the debtor, and each has the respective rights and duties of a secured party and a
debtor under sections 336.9-601 to 336.9-628. If a right or duty under sections 336.9-601 to
336.9-628 is contingent upon the existence of express language in a security agreement or may be
waived by express language in a security agreement, the requisite language does not exist.
    Subd. 7. Satisfaction of lien. A lienholder must remove a lien statement from the filing
system after the lien is satisfied. If the lienholder does not remove the lien statement, the
commissioner shall remove the lien statement upon request of an affected party and providing
proof is furnished that the lien has been terminated.
    Subd. 8. Enforcement action. An agricultural producer's lien may be brought in district
court in a county where the property to which the lien attaches is located or the county where the
agricultural commodity was originally delivered. The court shall allow costs including attorney
fees to the prevailing party.
History: 1990 c 517 s 10; 1993 c 48 s 12; 2001 c 195 art 2 s 29-31