Farmers Cooperative Elevator Co. v. Union State Bank

Farmers Cooperative Elevator Co. (CO-OP) (plaintiff) made purchase-money loans to hog farmer Rodger Cockrum to buy feed, retaining a purchase-money security interest (PMSI) in the feed and feeder hogs; Union State Bank (defendant) separately held a broader security interest in Cockrum's livestock, equipment, and supplies. When Cockrum defaulted, both CO-OP and Union State claimed priority in the hogs, and the district court ruled Union State's lien had priority because CO-OP's PMSI in the feed did not extend to the hogs that ate it.