Essay On Crop Liens

We’ve recently had questions come up about crop liens and how they apply to cash rent landlords and crop-sharing arrangements. The standard rule for crop liens is the lien attaches to the grain, not the person. This rule should always be followed when the farmer does not have a landlord. When dealing with a farmer that does have a landlord there are two different ways the lien can be applied and this depends on the type of relationship the farmer has with his landlord, cash rent or crop sharing. Below is a description on how crop liens should be handled based up the different types of landlord relationships.
Cash Rents: In this scenario the farmer rents his land from the landlord and pays rent due to the landlord in cash or assigned bushels.

Keep in mind this does not mean we’re relieved of our financial responsibility of paying the lienholder if the farmer is the one selling the grain to us for his account and he has a lien on his account. Or, checking to see if the landlord or other crop sharing partners have liens on their account as well.
If you do find that the landlord or crop sharing partner do have a liens against the grain you’ll need to follow the same steps listed above in the Cash Rents section for placing the lienholder on the check, assigning bushels, or obtaining a lien release.
When dealing with farmers that have landlords it’s vital you know and understand, and consistently inquire about, what type of arrangement they have with their landlords. This knowledge is Bartlett’s first step in managing the risks associated with liens and reducing the possibility we end up double paying for grain. If you have any questions related to liens feel free to contact the credit department for assistance or further