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Can I place a lien on cattle for unpaid feed bills?

Can I place a lien on cattle for unpaid feed bills?

Full question:

Can I place a lien on cattle for their feed bill? I have said cattle in my feedlot.

Category: Misc
Date: 04/07/2025
State: California

Answer:

In California, if you provide feed or materials for dairy cattle, you may have a lien on the proceeds from the milk or milk products produced from those cattle. This lien secures the reasonable or agreed charges for the feed or materials and the costs associated with enforcing the lien.

However, the total amount secured by the lien cannot exceed the reasonable or agreed charges for feed or materials provided within a 45-day period. Additionally, only two providers of feed or materials can have an enforceable lien at any time, following the priority rules set out in California Civil Code Section 57406.

The lien attaches to the proceeds, and as long as you remain unpaid or continue to provide feed or materials regularly (with no more than 30 days between deliveries), the notice of claim of lien remains effective without needing to file a new notice.

To perfect the lien, you must file a notice of claim of lien with the Secretary of State, which must include your name and address, the lien debtor’s name and address, the location of the dairy, and a statement confirming your lien under Section 57402. The notice must be signed by you or an authorized person and filed using the standard form for financing statements as prescribed by the Secretary of State.

After filing, you must provide written notice of the claim of lien to the lien debtor within ten days.

For further details, refer to California Civil Code Sections 57402 to 57406.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Does UCC apply to livestock?

Yes, the Uniform Commercial Code (UCC) applies to livestock as farm products. Under UCC Article 9, a security interest can be created in livestock, allowing creditors to secure loans with the animals as collateral. This means that if a borrower defaults, the creditor can claim the livestock to satisfy the debt. However, specific state laws may also govern how these liens are enforced, so it's important to consider local regulations.

What is an agricultural lien?

An agricultural lien is a legal claim against farm products or livestock to secure payment for services or goods provided, such as feed or veterinary care. This type of lien allows the provider to retain rights to the products until debts are settled. In California, agricultural liens can be filed under specific statutes, ensuring that those who supply goods to farmers are compensated for their contributions.

How to put a lien on cattle?

To place a lien on cattle in California, you must file a notice of claim of lien with the Secretary of State. This notice should include your name, the debtor's name, the cattle's location, and a statement confirming your lien. After filing, you must notify the debtor in writing within ten days. Ensure you comply with the relevant statutes, such as California Civil Code Sections 57402 to 57406, for proper enforcement.

What are farm products under the UCC?

Under the UCC, farm products include crops, livestock, and other goods produced or raised on a farm. These products can be subject to security interests, allowing lenders to secure loans with the farm products as collateral. This classification helps protect the interests of those providing goods or services to farmers, ensuring they can enforce liens when necessary.

How to put a lien on livestock?

To place a lien on livestock, you need to file a notice of claim of lien with the appropriate state authority, such as the Secretary of State in California. This notice should detail your name, the debtor's information, and the location of the livestock. It's essential to follow state-specific regulations, including notifying the debtor within a specified timeframe after filing the lien.

What are the conditions for lien?

The conditions for a lien typically include providing goods or services that benefit the property, such as feed for cattle. In California, the lien must be filed within a specific timeframe, and the amount secured cannot exceed the reasonable charges for goods provided within a 45-day period. Additionally, only two providers can have a lien on the same livestock at any time, following priority rules.