AG Services of America, Inc. v. Kechter

EISMANN, Justice.

The plaintiff appeals from a decision of the district court holding that the plaintiffs perfected security interest in the proceeds of the sale of a potato crop is subordinate to the lien of the warehouseman who stored the potatoes prior to their sale. We vacate the decision of the district court.

I. FACTS AND PROCEDURAL HISTORY

Ag Services of America, Inc. (herein “Ag Services”) loaned money to a farmer named Shane Lierman to be used in raising various crops, including potatoes, during the 1999 growing season. To secure payment of those loans, Lierman granted Ag Services a…