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From course:

Secured Transactions

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Question:

Farm Products

Author: Parker Kirkpatrick



Answer:

Goods, other than standing timber, in which debtor is engaged in a farming operation (raising, cultivating, fattening, grazing or other farming operation) and which are (a) crops growing, grown, or to be grown (b) livestock, born or unborn (c) supplies used up or produced in farming operations or (d) products of crops or livestock in their unmanufactured states  Ceases to be farming products when the debtor ceases to be engaged in farming operations (raising, cultivating, fattening, grazing or other farming operation) with them  Even if debtor is engaged in farming operations the product loses its farm product status if it goes under a manufacturing state unless the process is so closely connected with farming such as pasteurizing milk or boiling SAP to produce syrup or sugar that they would not constitute manufacturing on the other hand extensive canning operations are not farming products anymore and then become inventory normally (case where the cows were sold and the person was no longer engaged in farming operations so it was inventory)


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