579B.3  Establishment of lien--priority.

A contract producer who is a party to a production contract executed pursuant to section 579B.2 shall have a lien as provided in this section. The amount of the lien shall be the amount owed to the contract producer pursuant to the terms of the production contract, which may be enforced as provided in section 579B.5.

1. a.  If the production contract is for the production of livestock or raw milk, all of the following shall apply:

(1)  For livestock, the lien shall apply to all of the following:

(a)  If the livestock is not sold or slaughtered by the contractor, the lien shall be on the livestock.

(b)  If the livestock is sold by the contractor, the lien shall be on cash proceeds from the sale. For purposes of this subparagraph, cash held by the contractor shall be deemed to be cash proceeds from the sale regardless of whether it is identifiable cash proceeds.

(c)  If the livestock is slaughtered by the contractor, the lien shall be on any property of the contractor that may be subject to a security interest as provided in section 554.9102.

(2)  For raw milk, the lien shall apply to all of the following:

(a)  If the raw milk is not sold or processed by the contractor, the lien shall be on the raw milk.

(b)  If the raw milk is sold by the contractor, the lien shall be on cash proceeds from the sale. For purposes of this subparagraph, cash held by the contractor shall be deemed to be cash proceeds from the sale regardless of whether it is identifiable cash proceeds.

(c)  If the raw milk is processed by the contractor, the lien shall be on any property of the contractor that may be subject to a security interest as provided in section 554.9102.

b.  The lien on livestock or raw milk is created at the time the livestock arrives at the contract livestock facility and continues for one year after the livestock is no longer under the authority of the contract producer. For purposes of this section, livestock is no longer under the authority of the contract producer when the livestock leaves the contract livestock facility.

2. a.  If the production contract is for the production of crops, all of the following shall apply:

b.  The lien on a crop is created at the time the crop is planted and continues for one year after the crop is no longer under the authority of the contract producer. For purposes of this section, a crop is no longer under the authority of the contract producer when the crop or a warehouse receipt issued by a warehouse operator licensed under chapter 203C for grain from the crop is no longer under the custody or control of the contract producer.

(1)  If the crop is not sold or processed by the contractor, the lien shall be on the crop.

(2)  If the crop is sold by the contractor, the lien shall be on cash proceeds from the sale. For purposes of this subparagraph, cash held by the contractor shall be deemed to be cash proceeds from the sale regardless of whether it is identifiable cash proceeds.

(3)  If the crop is processed by the contractor, the lien shall be on any property of the contractor that may be subject to a security interest as provided in section 554.9102.

Section History: Recent form

  99 Acts, ch 169, §16, 22, 24

Internal References

  Referred to in § 579B.1, 579B.2, 579B.4, 579B.5

Footnotes

  For future amendments to this section effective July 1, 2001, see 2000 Acts, ch 1149, §181-183, 187


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