Bank Wins Contest With Grain Co-Op

In a very recent case before the Iowa Supreme Court, reported at 941 N.W. 2d 876, 2020 Iowa Sup. LEXIS 38 (June 2, 2022), a farmer’s secured lender prevailed over a grain co-op in a battle over whether the grain co-op could deduct drying and storage charges from sales proceeds due the farmer.

The farmer in question regularly delivered his crops to the co-op, a licensed grain dealer with a grain warehouse and handling facility. He had a contract with the co-op for the storage, drying…