Scudder v. Farmers Production Credit Ass'n

ROBERTSON, Judge.

Dearold and Donna Scudder appeal a judgment rendered in favor of the plaintiff-appellee Production Credit Association (PCA). The trial court determined that payment received by the Scudders through the federal government's milk diversion program belonged to the PCA because the PCA had a properly perfected security interest in all of the Scudders' dairy cattle and the payment was a "contract right to such secured property and an account receivable from such secured property."

We reverse.

We glean the following facts from the record. The Scudders entered into agreements with the…