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You are asking . . .

Q. Are supplies and services provided more than 120 days before filing an agricultural supplier's lien covered by that lien?

A. No. As most of you are aware, those who provide supplies or services used in agricultural production may be entitled to a lien on the products produced by the use of the supplies. N.D.C.C. § 35-31-01. If this lien is properly filed, the supplier is entitled to priority over all other liens, except for those of agricultural processors. N.D.C.C. § 35-31-03. This includes priority over a security agreement covering either crops or livestock.

One requirement to obtain an agricultural supplier's lien is that the lien must be filed within 120 days of when the supplies or services are provided. Accordingly, any supplies or services provided prior to the 120 days or after the 120 days should not be covered by the lien. This situation may arise where a supplier provides goods from April 1st through October 31st and files the lien on November 1st, when the farmer no longer needs supplies for that season. In this situation, the goods supplied on or before July 3rd are not be covered by the lien, as they are outside of the 120 day period. Likewise, any goods or services provided on or after November 2nd are not covered by the lien. This interpretation is consistent with the recent Bankruptcy Court decision of In Re Bernstein, 230 B.R. 144 (Bankr. D.N.D. 1999).