– A lien for the person who supplies seed or electrical power used in crop production-
Although not exactly peanut butter and chocolate, the Nebraska legislature decided to shoehorn lien protections for the seed dealer and electric company into one statute. It is important to note that the dealer and power district do not have a lien on all crops, but only those “crops produced from the seed furnished or produced with the electrical power furnished.” Therefore, it is important to track which crops can and cannot be used to secure the cost of the seed or electricity.
The seed and electricity lien is perfected by filing a UCC article 9 financing statement within 60 days after the last date which seed was furnished or the electric meter was read. The financing statement must contain (1) the name, address, social security number or tax identification number of individual furnishing the seed or electricity; (2) the name, address, social security number or tax identification number of the individual who received the seed or electricity; (3) the contract price of the seed or electricity; and (4) the type, amount and date the seed was delivered or the type, amount and period during which the electricity was furnished. The seed dealer or electric company shall send a copy of the financing statement to the individual who received the seed or electricity at the time the lien is filed.
The seed and electricity lien does not enjoy super priority. Rather, the lien’s priority is established by the date it is filed and will not gain priority over another properly perfected lien created by the Uniform Commercial Code. Consequently, seed dealers and power companies should be diligent in filing their liens to ensure priority over other potential creditors.