Legal Definitions - growing crops

Growing Crops

In a legal context, "growing crops" refers to plants that have been cultivated or planted by human effort and are still attached to the land where they are growing. This term is significant because it helps determine whether these plants are considered part of the real estate (the land itself) or separate personal property, particularly in situations involving property sales, leases, or loans.

• Example 1: Sale of Farmland

  Imagine a farmer decides to sell their extensive property in late spring, while their wheat fields are lush and green, several months away from harvest. When the buyer and seller negotiate the purchase agreement, they must decide whether the "growing crops" of wheat are included in the sale of the land, or if the seller retains the right to harvest them later. If the contract doesn't explicitly state otherwise, the law might presume that the growing wheat, as part of the land, transfers to the new owner.

• Example 2: Agricultural Lease Agreement

  Consider a situation where a landowner leases a parcel of land to a tenant farmer for a one-year term. The tenant farmer plants a crop of corn. If the lease agreement specifies that the tenant must vacate the property immediately at the end of the term, but the corn is still actively "growing" and not yet ready for harvest, the agreement should clarify who has the right to the crop. Without such a clause, disputes could arise over whether the tenant can return to harvest the corn or if the landlord gains ownership of the still-growing crop.

• Example 3: Property as Loan Collateral

  A vineyard owner takes out a business loan, using their entire property, including the land and all improvements, as collateral. During the loan period, the grapevines are actively "growing crops," producing grapes that will eventually be harvested for wine. If the vineyard owner defaults on the loan, the lender's security interest typically extends to the land and anything permanently attached. The question might arise whether the value of the actively growing grapes, still on the vine, is also considered part of the collateral that the lender can claim to recover their losses.