I. Nature of the Lien
The Producer’s Lien is a California statutory lien. The lien is upon “any farm product” and upon all processed or manufactured forms of such farm product securing the producer’s labor, care and expense in growing and harvesting the product.2 “Farm products” are essentially all agricultural products of the soil and includes honey and beeswax, oil seeds, poultry, poultry product, livestock product and livestock for immediate slaughter.3 Timber, timber products, milk, milk products and aquacultural products are excluded.4
The lien is in favor of every producer of farm products that sells the product grown by the producer
to any processor under either an express or implied contract.5 A “producer” is a person engaged in the business of growing or producing farm products.6 An Illinois Bankruptcy Court construing California law, In re S.N.A. Nut Co. 197 B.R. 642, 652(B.CT.N.D. Illinois, 1996) has held that a California processor could assert a Producer’s Lien as to products it may grow. In SNA Nut Co., supra the Debtor attempted to defeat the California Producer’s Lien by arguing that since the party asserting the lien (in that case Tulare Nut Company) was also a processor, it was precluded from asserting the lien. The Court denied summary judgment on that issue finding an issue of fact as to the extent of product delivered by Tulare Nut Company to the Debtor that was actually grown byTulare Nut Company. Id.
- Rene Lastreto, II is an owner shareholder at Lang, Richert & Patch, Attorneys at Law, a
Professional Corporation. He has 30 years of experience in representing all contingencies in the
loan enforcement process including lenders, bankruptcy trustees, borrowers, equipment lessors
and others. His practice is in all Courts including the Bankruptcy Courts, Federal Courts and
California Superior Courts. He is certified in the area of Creditors Rights Law by the American
Board of Certification. ↩ - California Food and Ag Code § 55631. ↩
- California Food and Ag Code § 55403. ↩
- Id. ↩
- California Food and Ag Code § 55631. ↩
- California Food and Ag Code § 55408. ↩