What should be done if the collateral is growing crops?

When the collateral consists of growing crops, it is essential to file a financing statement in the appropriate real estate records where the land is located. This is because under Article 9 of the Uniform Commercial Code (UCC), growing crops are considered to be fixtures and are tied to the real estate on which they grow. Therefore, the proper way to perfect a security interest in growing crops is to ensure that the interest is duly recorded in the real estate records to give notice to third parties that the lender has a secured interest in those crops.

By filing in the real estate records, the secured party establishes priority over other creditors who may have an interest in the same property, including potential subsequent buyers or lienholders. This step is critical for maintaining the enforceability of the secured interest in the growing crops against other claims.

The other options do not provide the necessary legal protections and therefore do not fulfill the requirements for perfecting a security interest in growing crops. For instance, filing at the county where the debtor resides or with the state department of agriculture may not provide adequate notice to interested parties regarding the security interest in the crops specifically tied to real estate. Similarly, claiming that no filing is necessary neglects the legal requirement to properly perfect the security interest, which can