Ark. Code Ann. » Title 2 Chapter 17
Arkansas Code Annotated

Ark. Code Ann. § 2-17-303 (2026)

Title to grain

✓ current as of May 2026
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  1. Ownership of grain shall not change by reason of an owner's delivering grain to a public grain warehouseman. No public grain warehouseman shall sell or encumber any grain in his or her possession unless the owner of the grain has by written document transferred title of the grain to the warehouseman.
  2. Notwithstanding any provision of the Uniform Commercial Code, as amended, § 4-1-101 et seq., to the contrary or any other law to the contrary, all sales and encumbrances of grain by public grain warehousemen are void and convey no title unless the sales and encumbrances are supported by written documents executed by the owners specifically conveying title to the grain to the public warehousemen.

History. Acts 1981, No. 401, § 2; A.S.A. 1947, § 77-1340.

Research References

U. Ark. Little Rock L.J.

Adams, “Clear Title” for Farm Products: Congress and the Arkansas Legislature Attempt to Solve a Troublesome Problem, 10 U. Ark. Little Rock L.J. 619.

Case Notes

Applicability.

A federally licensed warehouse is exempt from this section. In re Bearhouse, Inc., 84 B.R. 552 (Bankr. W.D. Ark. 1988).

Landlord's claim for rent from the proceeds of grain sales was not protected by this section. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Advance Payments.

Unless transfer of title from a producer to a warehouseman has occurred, the grain is to be regarded as stored rather than sold, so the giving and taking of an advance payment does not remove the storer from the bond's protection under § 2-17-209. Tucker v. Durham, 285 Ark. 264, 686 S.W.2d 402 (1985).

Specific Conveyance by Written Document.

The language of this section that no title shall be transferred unless title is specifically conveyed to the warehousemen by a written document signed by the owner must be taken literally, and to do less would be to disregard the plain intent and purpose of the statute; thus, language that could be interpreted to mean that the owner was selling his or her grain was not sufficient to comply with the dictates of this section. Cooper, Inc. v. Farm Bureau Mut. Ins. Co., 289 Ark. 218, 711 S.W.2d 155 (1986).

Voidable Sales.

This section does not say a farmer can void an outright sale he or she makes to a warehouseman; rather, only a sale made by a warehouseman of grain delivered to him or her or storage can be voided. Farm Bureau Mut. Ins. Co. v. Wright, 285 Ark. 228, 686 S.W.2d 778 (1985).

This section allows an owner to void a sale made by a warehouseman. Rufus Comer Farms v. First State Bank, 47 Ark. App. 3, 884 S.W.2d 265 (1994).

Cited: Simmons First Nat'l Bank v. Wells, 279 Ark. 204, 650 S.W.2d 236 (1983).

Notes of Decisions
Cited in 3 cases, 1988–1994 · leading case: Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.), 84 B.R. 552 (Bankr. W.D. Ark. 1988).
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Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.), 84 B.R. 552 (Bankr. W.D. Ark. 1988). · cites it 6× “Coleman argues alternatively that title did not pass to Bearhouse upon delivery of the rice because A.C.A. § 2-17-303 (1987) provides that title does not pass to a warehouseman “unless such sales .”
Rufus Comer Farms v. First State Bank of Newport, 884 S.W.2d 265 (Ark. Ct. App. 1994). · cites it 9× “Dell Comer Rushing, Clyde Comer, and Elizabeth Comer, contends the chancellor erred in finding that its claim for rent was not protected by Ark. Code Ann. § 2-17-303 (1987) of the Public Grain Warehouse Law.”
Indosuez v. King, 878 S.W.2d 432 (Ark. Ct. App. 1994). · cites it 6× “The chancellor held that Ark. Code Ann. § 2-17-303 (a) (1987) protected the claims of the appellees who produced the rice and that their claims were entitled to be paid first from the proceeds from the sale of the rice.”
Ark. Code Ann. § 2-17-303(a): 1 case
Rufus Comer Farms v. First State Bank of Newport, 884 S.W.2d 265 (Ark. Ct. App. 1994). “Dell Comer Rushing, Clyde Comer, and Elizabeth Comer, contends the chancellor erred in finding that its claim for rent was not protected by Ark. Code Ann. § 2-17-303 (1987) of the Public Grain Warehouse Law.”
Ark. Code Ann. § 2-17-303(b): 1 case
Rufus Comer Farms v. First State Bank of Newport, 884 S.W.2d 265 (Ark. Ct. App. 1994). “Dell Comer Rushing, Clyde Comer, and Elizabeth Comer, contends the chancellor erred in finding that its claim for rent was not protected by Ark. Code Ann. § 2-17-303 (1987) of the Public Grain Warehouse Law.”
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