Agricultural Leases

[ Up ] [ Agricultural Leases ] [ Commercial Leases ] [ Residential Leases ] [ Enforcing the Landlord's Lien ]

An agricultural landlord may advance money or property to the  tenant for  the tenant's use in producing and storing crops on the leased land.  Animals  and tools are among the types of property that a lessor may advance

The agricultural landlord has a preference lien for rent that  becomes  due. In addition, the landlord has a preference lien for the money and  the  value of property that the landlord has furnished or caused to be furnished  to  the tenant to grow a crop on the leased premises and to gather, store, and  prepare the crop for marketing. This lien ordinarily attaches to: (1) the property on the leased  premises that the landlord furnishes or causes to be furnished to the tenant  to grow a crop on the leased premises; and (2) the crop grown on the leased  premises  in the year that the rent accrues or the property is furnished. However, if the  landlord provides everything except labor, the lien attaches only to the crop  grown in the year that the property is furnished. 

A law exempting property from forced sale does not apply to a  statutory  agricultural landlord's lien on agricultural products, animals, or  tools. The lien  does not  attach to the goods of a merchant, trader, or mechanic if the tenant  sells  and delivers the goods in good faith in the regular course of business.

The statutory agricultural landlord's lien does not arise if  either of  the following two situations exists: (1) the tenant provides  everything  necessary to cultivate the leased premises and the landlord charges  rent of  more than one-third of the value of the grain and one-fourth of the  value of  the cotton grown on the premises; or (2) the landlord provides  everything  except the labor and directly or indirectly charges rent of more  than  one-half of the value of the grain and cotton grown on the premises.

The statutory agricultural landlord's lien exists while the  property to  which it is attached remains on the leased premises and until one  month after  the day that the property is removed from the premises. If  agricultural  products to which the lien is attached are placed in a public or bonded  warehouse regulated by state law before the 31st day after the day that  they are removed from the leased premises, the lien exists while they remain  in  the warehouse. If  an  advance or rent is unpaid, the tenant may not remove or permit the removal  of  agricultural products or other property to which the lien is attached from  the leased premises without the landlord's consent. If the landlord consents to the removal of  agricultural products subject to the lien for preparation for market, the lien continues to exist as if the products had not been removed. 

The landlord's statutory lien is preferred over other liens. The  landlord's  rights under the lien are superior to those of a purchaser from the  tenant,  regardless of actual notice to the purchaser, since the statute itself  is  deemed notice to all persons. If a purchaser buys a tenant's crop or a part  of the crop on which the landlord has a lien without the landlord's consent or authorization, the purchaser is liable to the landlord for a conversion to  the  extent of the lesser of the value of the crop converted or the amount of  rent  due.

[ Home ] [ Up ] [ Agricultural Leases ] [ Commercial Leases ] [ Residential Leases ] [ Enforcing the Landlord's Lien ]

Email:  Darrell W. Cook

Ask Your Legal Question Here