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SB 846

Liens: harvested crops.

2025-2026 Regular Session Introduced by Jerry McNerney

SB 846 establishes lien rights on harvested California crops, enabling creditors to claim agricultural produce as collateral, affecting farm financing and crop sale transactions.

Chaptered by Secretary of State. Chapter 57, Statutes of 2025.
#liens #harvestedcrops
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Bill Summary · SB 846

Legislative bill overview

SB 846 modifies California law to establish or clarify lien rights on harvested crops, allowing creditors or other parties to place liens against agricultural produce. The bill specifies the conditions under which such liens can be created, recorded, and enforced against harvested crop assets.

Why is this important

Agricultural lien law directly affects farm financing, equipment purchases, and supply chain credit arrangements. Clarifying lien rights on harvested crops can facilitate agricultural lending and reduce disputes between farmers, lenders, and suppliers over crop collateral—a significant issue in California's multi-billion dollar agricultural sector.

Potential points of contention

  • Impact on farmer liquidity: Expanded lien rights could restrict farmers' ability to freely sell harvested crops if multiple creditors claim liens, potentially creating cash flow problems during critical seasons
  • Prioritization ambiguity: The bill may create disputes over which liens take priority (first lender vs. equipment supplier vs. labor contractor), requiring costly legal resolution
  • Operational burden: Farmers and buyers must navigate new recording and notification requirements, adding administrative complexity to crop sales transactions

Compiled from official sources — confirm details with the bill’s official record.

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