This bill amends existing laws regarding agricultural processor's liens in South Dakota, specifically updating the requirements for obtaining and perfecting such liens. Key changes include allowing individuals who lease and operate farm machinery to process crops to claim a lien on various agricultural products, including grain, silage, and seeds. The bill also introduces a new process for perfecting the lien, which requires filing a financing statement electronically with the Secretary of State within sixty days of completing the processing. The statement must include specific information such as the names and addresses of the lienholder and the person for whom the service was performed, the amount due, and the location of the agricultural products.

Additionally, the bill clarifies the priority of the lien, stating that it takes precedence over other liens if filed within sixty days of processing completion. It establishes that if the agricultural product is sold or consigned without the lienholder's consent, the lien does not attach unless the purchaser is notified in writing. The bill also outlines the enforcement of the lien as an agricultural lien under secured transactions law, with a requirement to commence enforcement actions within sixty days of filing. The provisions of previous laws are superseded, and the new regulations will take effect on July 1, 2027.

Statutes affected:
Introduced, 01/21/2026: 38-17-14, 38-17-15, 38-17-16, 38-17-19
House Agriculture and Natural Resources Engrossed, 02/03/2026: 38-17-14, 38-17-15, 38-17-16, 38-17-19