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South DakotaHB 1111101st South Dakota Legislature (2026)House

modify the requirements for obtaining an agricultural processor's lien.

Sponsored By: Greenfield, Lana J. (Republican), Sauder, Stephanie (Republican)

Signed by Governor

Agriculture and HorticultureDelayed Effective DateLiensSession Laws

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Crop processors face new lien rules

Beginning July 1, 2027, qualifying crop processors get a lien—a legal claim on processed crops—for their service charges. The processor must own or lease and operate the farm machinery. The claim starts on the operation date. Covered work includes threshing or combining grain; shelling, husking, or shredding corn; cutting silage; and hulling seeds. It also covers baling, mowing, grinding, raking, or pulverizing other agricultural products. To secure the lien, processors must file a financing statement electronically with South Dakota’s secretary of state within 60 days after processing ends. They must swear that it is correct and give the customer a copy when filing. The statement must include the machinery owner, lessee, or operator’s name and address and the customer’s name and address. It must also list the amount owed, product amount and location, and service start and completion dates. Filing gives notice to later buyers and other claimholders. Timely filing puts the lien ahead of all other liens and claims on the covered products. Filing, amending, or releasing the lien carries the fee set by state secured-transactions law; section 54-13-10 does not apply. Separately, the law repeals sections 1–6 of the 2025 Session Laws, chapter 166, effective July 1, 2026.

Farm crop sales require lien notices

Beginning July 1, 2027, selling or consigning processed crops before the lien is secured requires notice of unpaid processing debt. The buyer or consignee must receive notice, and the lien attaches to the purchase price. A special rule applies to sales or consignments made with the lienholder’s written consent within 60 days after processing ends. If no financing statement is filed, the lien does not attach to the crops or proceeds unless the lienholder notifies the buyer in writing before purchase. Processors must start an enforcement case within 60 days after filing their financing statement, or the lien ends. The customer can then remove the filing by submitting a termination statement and sworn proof that no timely case began. These liens are agricultural liens enforced under the state’s secured-transactions rules. Anyone holding a lien under sections 38-17-3 through 38-17-18 can also foreclose under those rules.

Sponsors & Cosponsors

Sponsors

  • Greenfield, Lana J.

    Republican • House

  • Sauder, Stephanie

    Republican • Senate

Cosponsors

  • Emery, Eric

    Democratic • House

  • Goodwin, Tim

    Republican • House

  • Moore, Scott

    Republican • House

  • Novstrup, Al

    Republican • House

  • Uhre-Balk, Nicole

    Democratic • House

  • Van Diepen, Kevin

    Republican • House

  • Wipf, Brandon

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 112 • No: 5

Senate vote • 2/20/2026

Do Pass Amended

Yes: 34 • No: 0

Senate vote • 2/19/2026

Do Pass

Yes: 6 • No: 0

House vote • 2/6/2026

Do Pass Amended

Yes: 59 • No: 5

House vote • 2/3/2026

Do Pass Amended

Yes: 13 • No: 0

Actions Timeline

  1. Signed by the Governor

    3/4/2026House

  2. Delivered to the Governor

    2/25/2026House

  3. Signed by the President

    2/24/2026Senate

  4. Signed by the Speaker

    2/23/2026House

  5. Senate Do Pass Amended, Passed, YEAS 34, NAYS 0

    2/20/2026Senate

  6. Certified uncontested, placed on consent

    2/19/2026Senate

  7. Senate Agriculture and Natural Resources Do Pass, Passed, YEAS 6, NAYS 0

    2/19/2026Senate

  8. Scheduled for hearing

    2/19/2026Senate

  9. First read in Senate and referred to Senate Agriculture and Natural Resources

    2/9/2026Senate

  10. House of Representatives Do Pass Amended, Passed, YEAS 59, NAYS 5

    2/6/2026House

  11. Remove from Consent Calendar

    2/5/2026House

  12. Certified uncontested, placed on consent

    2/3/2026House

  13. House Agriculture and Natural Resources Do Pass Amended, Passed, YEAS 13, NAYS 0

    2/3/2026House

  14. House Agriculture and Natural Resources Motion to amend, Passed

    2/3/2026House

  15. Scheduled for hearing

    2/3/2026House

  16. First read in House and referred to House Agriculture and Natural Resources

    1/22/2026House

Bill Text

  • Introduced

    1/21/2026

    PDF

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