Professional Documents
Culture Documents
and Credit
Financing the Farm: A Law Bulletin Series
on Legal Arrangements for Farm Financing
Peggy Kirk Hall, Associate Professor- Agricultural and Resource Law Program; Ohio State University
Extension
Evin Bachelor, Law Fellow- Agricultural and Resource Law Program; Ohio State University Extension
New farmers are exposed to a number of different finance and credit instruments when they start
to build their farm businesses. Fortunately, this allows them access to capital for purchasing land,
equipment, livestock, inputs and supplies. Unfortunately, lenders do not always explain the legal
components and implications of these documents to a beginning farmer. This series provides new
and beginning farmers with an overview of the most commonly used documents in agricultural
finance. Each law bulletin covers a different type of financial agreement, and explains basic
terminology, fundamental legal requirements, and how the arrangement is used in farming
operations.
State statutory liens on agricultural products, equipment and production inputs are nonconsensual
interests. The liens arise by operation of law, without the consent of the lien debtor, when the
specific requirements of the statutes creating the lien are met. These liens may be scattered
throughout a state’s code. Moreover, statutory provisions as to filing and priority of these liens may
vary greatly among the states, and even within a single state. These Statutory Agricultural Lien
Charts, originally published in 1993 and thoroughly reviewed and updated in 2009, compile and
tabulate the main provisions of statutory agricultural liens in all fifty states. Download this
article. Posted: March 4, 2009.
This article considers the legal facets of the Farm Credit Services of America resolution to terminate
its status as a Farm Credit System Institution so that it could become a wholly owned subsidiary of
Rabobank. Specifically, the article examines the possibility of approval of such a termination
application by the Farm Credit Administration and the stockholders of Farm Credit Services of
America. Download this article. Posted: Oct. 18, 2004
It has been said that Revised Article 9 of the Uniform Commercial Code was designed to bring
greater certainty to financing transactions, thus reducing the overall cost of credit. This broad goal
is to be accomplished by expanding the scope of Article 9 and clarifying the rules governing security
interests. One specific example of this expansion is the inclusion of agricultural