IN RE OTTO FARMS, INC.

No. 99-72764.

247 B.R. 757 (2000)

In re OTTO FARMS, INC., Debtor.

United States Bankruptcy Court, C.D. Illinois.

April 27, 2000.


Attorney(s) appearing for the Case

John S. Narmont, Springfield, IL, for debtor.

Barry M. Barash, Galesburg, IL, Keith A. Luymes, Galva, IL, for Sun Ag.

Michael D. Clark, Peoria, IL, Chapter 12 Trustee.


OPINION

LARRY L. LESSEN, Bankruptcy Judge.

The issue before the Court is whether Sun Ag has a valid security interest in certain loan deficiency payments which the Debtor received post-petition pursuant to a government farm program.

The Debtor, Otto Farms, Inc., had a customer-supplier relationship with Sun Ag, Inc., wherein Sun Ag provided the Debtor with crop inputs from 1995 through 1999. The Debtor did...

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