Crop Lien

A crop lien is a legal claim a lender holds on a farmer's crops as collateral for a loan. When farmers borrow money to pay for seeds, equipment, or other expenses, they may agree to let the lender take a portion of their future crop harvest if they cannot repay the loan. This arrangement helps farmers secure financing while providing lenders some security, knowing they can be paid from the crops produced. Crop liens are commonly used in agriculture, particularly during times when cash flow is limited.