Changes to Existing Law

26.263.11 26.263.12 101st Legislative Session 1111 2026 South Dakota Legislature House Bill 1111 HOUSE AGRICULTURE AND NATURAL RESOURCES ENGROSSED Introduced by: Representative Greenfield Underscores indicate new language. Overstrikes indicate deleted language. An Act to modify the requirements for obtaining an agricultural processor's lien. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That § 38-17-14 be AMENDED: 3 38-17-14. Any person owning or leasing and operating farm machinery to process 4 a crop has a lien from the date of operation on all grain threshed or combined,; corn 5 shelled, husked or shredded,; silage cut,; seeds hulled,; or agricultural products baled, 6 mowed, ground, raked, or pulverized by the person with the machine for the value of the 7 services so rendered in operation. 8 Section 2. That § 38-17-15 be AMENDED: 9 38-17-15. Any person entitled to a lien under § 38-17-14 shall provide a written 10 account stating the kind of grain, and the quantity harvested, threshed, shelled, or 11 otherwise processed, the price agreed upon for such work, which may not exceed the price 12 usually charged for the service, the name of the person for whom the work was done, and 13 a description of the land on which the crop was grown perfect the lien as provided in 14 chapter 57A-9 and in this section. Any financing statement filed to perfect the lien must 15 contain or have attached to it the following information: 16 (1) The name and address of the owner or lessee and operator claiming the lien; 17 (2) The name and address of the person for whom a service specified in § 38-17-14 18 was performed; 19 (3) The amount due for the service; 20 (4) The amount of grain, seed, hay, silage, or other agricultural product covered by 21 the lien; 22 (5) The place where the grain, seed, hay, silage, or other agricultural product is 23 located; 24 (6) The date on which the service was commenced; and 25 26.263.11 26.263.12 2 1111 Underscores indicate new language. Overstrikes indicate deleted language. (7) The date on which the service was completed. 1 After making oath to the correctness of the account, the person shall file the 2 account in the office of the register of deeds in the county in which the land producing the 3 crop is located, and also in the county of the residence of the person who produced the 4 crop, if the person is a resident of this state. The office of the register of deeds shall file 5 and enter the account in the manner required by law in the personal property index. The 6 filing serves as notice to all purchasers and encumbrancers subsequent to the date of the 7 filing statement, the person shall file the statement electronically with the secretary of 8 state. The filing serves as notice of the lien, to all, including purchasers and 9 encumbrancers, subsequent to the date of the filing. 10 To perfect the lien, the financing statement must be filed within thirty sixty days of the 11 date the processing of the crop was finished. At the time the financing statement is filed, 12 the lienholder shall provide a copy of the financing statement to the person for whom the 13 work was done. 14 Section 3. That a NEW SECTION be added to chapter 38-17: 15 If the person for whom the processing pursuant to § 38-17-14 was done desires 16 to sell or consign the grain, seed, hay, silage, or other agricultural product, before the 17 time to perfect the lien has expired, the person must notify the consignee or purchaser 18 that the bill debt for the threshing, combining, shelling, husking, shredding, cutting, hulling, 19 baling, mowing, grinding, raking, or pulverizing has not been paid, and the lien created 20 under § 38-17-14 applies to the purchase price paid by the purchaser or consignee. 21 If the agricultural product covered by the lien pursuant to § 38-17-14 is sold or 22 consigned with the written consent of the person entitled to a lien, within thirty sixty days after 23 the date of the completion of the processing and no financing statement has been filed, 24 the lien does not attach to the agricultural product covered by the lien pursuant to § 38-25 17-14, or to the purchase proceeds, unless the person entitled to the lien notifies the 26 purchaser in writing of the lien before the purchase. 27 Section 4. That § 38-17-16 be AMENDED: 28 38-17-16. Any lien under § 38-17-14 has priority over all other liens and 29 encumbrances upon the grain, if filed within thirty days from the day on which the 30 harvesting, threshing, shelling, or other processing was completed threshed or combined; 31 corn shelled, husked or shredded; silage cut; seeds hulled; or agricultural products baled, 32 26.263.11 26.263.12 3 1111 Underscores indicate new language. Overstrikes indicate deleted language. mowed, ground, raked, or pulverized, if filed within thirty sixty days from the day on which the 1 processing of the crop was completed. 2 A lien created under §§ 38-17-14 to 38-17-18, inclusive, must be treated as an 3 agricultural lien, as provided in chapter 57A-9, and may be enforced in the manner and 4 form provided for the enforcement of secured transactions, except that the action to 5 enforce the lien must be commenced within thirty sixty days after the filing of the financing 6 statement. 7 If the lien claimant does not commence an action to enforce the lien within thirty sixty 8 days of filing the financing statement, the lien is terminated, and the person for whom the 9 processing was done may cause the financing statement to be expunged from the record 10 by filing a termination statement, together with a sworn statement that no action to 11 enforce the lien has been commenced within thirty sixty days of the filing of the lien claimant's 12 financing statement. 13 The fee for filing, amending, or releasing the lien is as set forth in § 57A-9-525. 14 The provisions of § 54-13-10 do not apply to liens created under §§ 38-17-14 to 15 38-17-18, inclusive. 16 Section 5. That § 38-17-19 be AMENDED: 17 38-17-19. Any person having a lien under the provisions of §§ 38-17-3 to 38-17-18 18, inclusive, may foreclose the same under the provisions of chapter 21-53 or under the 19 provisions of chapter 21-54, subject to the right of any person adversely interested to 20 require foreclosure under the provisions of chapter 21-53 chapter 57A-9. 21 Section 6. The 2025 Session Laws, chapter 166, §§ 1 to 6, inclusive, are superseded as of 22 July 1, 2026. 23 Section 7. Sections 1 to 5, inclusive, of this Act are effective beginning July 1, 2027. 24

26.263.12 26.263.13 101st Legislative Session 1111 2026 South Dakota Legislature House Bill 1111 HOUSE AGRICULTURE AND NATURAL RESOURCES ENGROSSED Introduced by: Representative Greenfield Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to modify the requirements for obtaining an agricultural processor's lien. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That § 38-17-14 be AMENDED: 3 38-17-14. Any person owning or leasing and operating farm machinery to process 4 a crop has a lien from the date of operation on all grain threshed or combined,; combined; corn 5 shelled, husked or shredded,; shredded; silage cut,; cut; seeds hulled,; hulled; or agricultural products baled, 6 mowed, ground, raked, or pulverized by the person with the machine for the value of the 7 services so rendered in operation. 8 services. Section 2. That § 38-17-15 be AMENDED: 9 38-17-15. Any person entitled to a lien under § 38-17-14 shall provide a written 10 account stating the kind of grain, and the quantity harvested, threshed, shelled, or 11 otherwise processed, the price agreed upon for such work, which may not exceed the price 12 usually charged for the service, the name of the person for whom the work was done, and 13 a description of the land on which the crop was grown perfect the lien as provided in 14 chapter 57A-9 and in this section. Any financing statement filed to perfect the lien must 15 contain or have attached to it the following information: 16 (1) The name and address of the owner or lessee and operator claiming the lien; 17 (2) The name and address of the person for whom a service specified in § 38-17-14 18 was performed; 19 (3) The amount due for the service; 20 (4) The amount of grain, seed, hay, silage, or other agricultural product covered by 21 the lien; 22 (5) The place where the grain, seed, hay, silage, or other agricultural product is 23 located; 24 (6) The date on which the service was commenced; and 25 26.263.12 2 1111 Underscores indicate new language. Overstrikes indicate deleted language. (7) The date on which the service was completed. 1 After making oath to the correctness of the account, the person shall file the 2 account in the office of the register of deeds in the county in which the land producing the 3 crop is located, and also in the county of the residence of the person who produced the 4 crop, if the person is a resident of this state. The office of the register of deeds shall file 5 and enter the account in the manner required by law in the personal property index. The 6 filing serves as notice to all purchasers and encumbrancers subsequent to the date of the 7 filing statement, the person shall file the statement electronically with the secretary of 8 state. The filing serves as notice of the lien, to all, including purchasers and 9 encumbrancers, subsequent to the date of the filing. 10 26.263.13 2 1111 HB1111 ENROLLED To perfect the lien, the financing statement must be filed within sixty days of the 11 date the processing of the crop was finished. At the time the financing statement is filed, 12 the lienholder shall provide a copy of the financing statement to the person for whom the 13 work was done. 14 Section 3. That a NEW SECTION be added to chapter 38-17: 15 If the person for whom the processing pursuant to § 38-17-14 was done desires 16 to sell or consign the grain, seed, hay, silage, or other agricultural product, before the 17 time to perfect the lien has expired, the person must notify the consignee or purchaser 18 that the debt for the threshing, combining, shelling, husking, shredding, cutting, hulling, 19 baling, mowing, grinding, raking, or pulverizing has not been paid, and the lien created 20 under § 38-17-14 applies to the purchase price paid by the purchaser or consignee. 21 If the agricultural product covered by the lien pursuant to § 38-17-14 is sold or 22 consigned with the written consent of the person entitled to a lien, within sixty days after 23 the date of the completion of the processing and no financing statement has been filed, 24 the lien does not attach to the agricultural product covered by the lien pursuant to § 38-25 17-14, 38-17-14, or to the purchase proceeds, unless the person entitled to the lien notifies the 26 purchaser in writing of the lien before the purchase. 27 Section 4. That § 38-17-16 be AMENDED: 28 38-17-16. Any lien under § 38-17-14 has priority over all other liens and 29 encumbrances upon the grain, if filed within thirty days from the day on which the 30 harvesting, threshing, shelling, or other processing was completed grain threshed or combined; 31 corn shelled, husked or shredded; silage cut; seeds hulled; or agricultural products baled, 32 26.263.12 3 1111 Underscores indicate new language. Overstrikes indicate deleted language. mowed, ground, raked, or pulverized, if filed within sixty days from the day on which the 1 processing of the crop was completed. 2 A lien created under §§ 38-17-14 to 38-17-18, inclusive, must be treated as an 3 agricultural lien, as provided in chapter 57A-9, and may be enforced in the manner and 4 form provided for the enforcement of secured transactions, except that the action to 5 enforce the lien must be commenced within sixty days after the filing of the financing 6 statement. 7 If the lien claimant does not commence an action to enforce the lien within sixty 8 days of filing the financing statement, the lien is terminated, and the person for whom the 9 processing was done may cause the financing statement to be expunged from the record 10 by filing a termination statement, together with a sworn statement that no action to 11 26.263.13 3 1111 HB1111 ENROLLED enforce the lien has been commenced within sixty days of the filing of the lien claimant's 12 financing statement. 13 The fee for filing, amending, or releasing the lien is as set forth in § 57A-9-525. 14 The provisions of § 54-13-10 do not apply to liens created under §§ 38-17-14 to 15 38-17-18, inclusive. 16 Section 5. That § 38-17-19 be AMENDED: 17 38-17-19. Any person having a lien under the provisions of §§ 38-17-3 to 38-17-18 18, 38-17-18, inclusive, may foreclose the same under the provisions of chapter 21-53 or under the 19 provisions of chapter 21-54, subject to the right of any person adversely interested to 20 require foreclosure under the provisions of chapter 21-53 chapter 57A-9. 21 Section 6. The 2025 Session Laws, chapter 166, §§ 1 to 6, inclusive, are superseded as of 22 July 1, 2026. 23 Section 7. Sections 1 to 5, inclusive, of this Act are effective beginning July 1, 2027. 24 26.263.13 4 1111 HB1111 ENROLLED An Act to modify the requirements for obtaining an agricultural processor's lien. I certify that the attached Act originated in the: House as Bill No. 1111 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1111 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State