Vol. 31, No. 3, #7. Unraveling Parties' Rights Regarding Agricultural Liens under Revised Article 9 of Wyoming Law - A Gordian Knot?.

• Author: Author: Alan Schroeder

Wyoming Bar Journal

2008.

Vol. 31, No. 3, #7.

Unraveling Parties' Rights Regarding Agricultural Liens under Revised Article 9 of Wyoming Law - A Gordian Knot?

Wyoming Bar Journal Issue: June, 2008 Author: Alan Schroeder Unraveling Parties' Rights Regarding Agricultural Liens under Revised Article 9 of Wyoming Law - A Gordian Knot?

In 2001, Wyoming adopted revised Article 9 (RAN) of the Uniform Commercial Code (UCC), tying together some of the requirements for agricultural liens and security interests. Proponents argue that RAN ensures knowledge of agricultural liens and unifies priority rules governing agricultural liens and security interests. But RAN's conflicting rules may sabotage both ends. Indeed its agricultural lien provisions may trip the unwary and test Wyoming's attorneys, courts, and legislature as they address the Gordian knot RAN creates. This article is based upon a longer extension bulletin currently under review. It summarizes RAN's agricultural lien provisions. It is not intended to be a substitute for specific legal advice.

Agricultural Liens and RAN

Wyoming Agricultural Liens Covered by RAN

RAN describes an agricultural lien as "an interest, other than a security interest, in farm products" satisfying five (5) requirements. (WYO. STAT. ANN. 34.1-9-102(a)(v) (2005).) First, the lien "secures payment or performance" for goods or services furnished or rent owed in connection with a debtor's farming operation. Producer's liens do not qualify since the debtor processing plant is not a farming operation. Second, it must be statutory. Common law liens are not covered. Third, it must be on farm products. Contractor's liens on real property do not qualify. Fourth, covered creditors must supply goods or services in the ordinary course of business or rent land to debtor's farming operation. Fifth, the lien must not "depend" on the collateral's possession.

Title 29 of the Wyoming statutes establishes a tangle of agriculturally-related creditor liens. Only four satisfy RAN's requirements (see table 1): 1) harvesters' liens; 2) artisan liens for services and feed given agricultural producers; 3) feeding, herding, or care liens; and 4) breeders' liens. Wyoming has no statutory agricultural landlord lien or specific statutory liens protecting veterinarians, feed processors, pesticide applicators, etc. These creditors can...