Minnesota Statute Chapter 27 helps to protect sellers of farm products through the farm products dealers trust which, once filed, prioritizes a seller's claims in the event of bankruptcy or insolvency.
Farm Products Dealers Trust
The Farm Product Dealers Act creates a trust in the dealer's perishable farm products, manufactured farm products, and proceeds from those products. It is a way that unpaid sellers can seek reimbursement from buyers. This trust operates like a lien against the dealer's property and takes priority over security interests others may have. The seller must file a claim with the following entities:
- Dealer who owes the money
- Farm Product Dealers Program, Minnesota Department of Agriculture
- Minnesota Secretary of State
The trust claim must be filed within 40 days after the due date for payment.
Definition of Farm Products
Perishable farm products are:
- produce, including fresh fruits, vegetables, and mushrooms;
- milk and cream and products manufactured from milk and cream; and
- poultry and poultry products, including eggs.
Manufactured farm products are products derived from perishable farm products through manufacturing, processing, or packaging.
Complaints and Investigations
The MDA is authorized to conduct investigations against any person dealing in, shipping, transporting, storing or selling perishable farm products. A party who wishes to request an investigation under this authority should contact our office.
Products of your farm or garden are excluded from food licensing requirements (see Food Licensing Exclusions and Exemptions). However, if you want to resell produce from another grower or supplier, you need a Food Handler. Please contact the Minnesota Department of Agriculture’s Licensing Liaison for more information via email at mda.licensing@state.mn.us, or by phone at 651-201-6062.
