United States v. Kenyon Farms, Inc.

Action was brought in the United States District Court by the United States against the appellee, Kenyon Farms, a corporate farm in Idaho, for conversion of potatoes and other crops on which the Farmers Home Administration held a crop and chattel mortgage.

Crop and Chattel Mortgages were properly recorded by the Farmers Home Administration in March 1960, and March 1962, with Mr. and Mrs. Blaine P. Martindale as mortgagors. The mortgages covered the Martindales’ interest in

At the time of the execution of the crop and chattel mortgage in question upon this appeal, the borrowers Blaine P. Martindale and Rachel 0. Martindale were tenants on a farm owned by W. B. Whiteley. Whiteley’s farm was located in Cassia County.

During the year 1960, Blaine P. Martindale and Rachel O. Martindale became tenants on a farm owned by appellee also located in Cassia County. The Martin-dales had a one-half interest in crops grown on appellee’s farm.

The lease interest in appellee’s farm was shared equally between the Martin-dales and W. B. Whiteley. W. B. Whiteley was an officer and held a large interest in appellee.

During the years 1960 and 1961, the crops from appellee’s farm were sold to…