The Bank of North Arkansas v. Jimmy Carroll Owens, Bank of Salem, the United States of America Farmers Home Administration

JOHN R. GIBSON, Circuit Judge.

The Bank of North Arkansas appeals from a district court1 order, 76 B.R. 672 (1987), affirming the bankruptcy court’s decision that North Arkansas did not possess a perfected security interest in dairy termination payments received by debtor Jimmy Owens. Owens, who had pledged his dairy herd to secure a loan with North Arkansas, contracted with the federal government to stop producing milk for five years, in return for the termination payments. This agreement also required Owens to sell his dairy cows for slaughter or export. The cattle were sold, with the sale…