27 Apr Considerations for the Kansas grain industry following a ruling by the Iowa Supreme Court on grain warehouse deductions for drying and storage charges
The state Supreme Court of Iowa recently published a ruling on MidwestOne Bank v. Heartland Co-op, where a bank (MidwestOne) maintained a prior perfected security interest in a financially distressed farmer’s grain that was stored at the grain elevator (Heartland Co-op). Upon the sale of the grain, the elevator withheld part of the proceeds for its drying and storage services. Neither the elevator nor the farmer notified the bank of the deductions. The bank then sued the elevator on a conversion action for the amount of the withheld deductions, arguing that the elevator’s withholding of the proceeds violated the bank’s...