15:58
oop
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
agricultural lien
Read a random definition: dead-and-buried company
A quick definition of agricultural lien:
An agricultural lien is a special kind of loan that farmers can get to help them grow crops or raise animals. When a farmer takes out this loan, they have to put something valuable, like their farm equipment or livestock, up as collateral. This means that if the farmer can't pay back the loan, the lender can take possession of the collateral. Every state has a law that automatically creates an agricultural lien when a farmer takes out this kind of loan. These loans are really important for farmers because they help them keep their farms running and produce food for everyone.
A more thorough explanation:
An agricultural lien is a type of lien that is placed on farm products such as livestock or farm equipment. This lien is used to secure payment or performance in exchange for a loan of land, goods, or money. These loans are important for farmers as they allow them to produce the next season of crops or raise the next season of livestock.
If a farmer is unable to repay the loan, the creditor can take possession of the farmer's farm products. This is possible due to the agricultural lien that was placed on the property when the loan was taken out.
For example, if a farmer takes out a loan to purchase new equipment for their farm, the creditor may place an agricultural lien on the equipment. If the farmer is unable to repay the loan, the creditor can take possession of the equipment to recoup their losses.
It is important to note that every state has its own statute regarding agricultural liens. These statutes automatically create an agricultural lien on the property of the farmer when they take out a loan under the circumstances provided by that individual statute.