In Re Truman R. Kingsley and Connie Kingsley, Debtors. Truman R. Kingsley and Connie Kingsley v. First American Bank of Casselton

JOHN R. GIBSON, Circuit Judge.

The central issue in this case is whether farm deficiency and diversion payments under the federal price support and production adjustment programs are “proceeds” of crops under North Dakota law and therefore covered by a security agreement applying to crops and their proceeds. Truman and Connie Kingsley appeal from an order of the district court reversing the bankruptcy court and upholding as enforceable First American Bank of Casselton’s claimed security interest in the Kingsleys’ 1986 crops, cash proceeds thereof, and federal deficiency and diversion payments.…