Barbri Secured Transactions Practice Test 2025 – Complete Exam Prep

Farm products are classified as livestock and unprocessed goods because these items are directly produced from agricultural activities. Under the Uniform Commercial Code (UCC), which governs secured transactions, farm products encompass crops and other goods that are produced by farmers, livestock, and other agricultural products that have not yet been processed. This classification highlights the nature of the goods as being in their raw form, emphasizing their role in the agricultural sector prior to any transformation or processing into another product.

Processed goods, tangible equipment, and office supplies do not fit within the category of farm products as defined by the UCC. Processed goods, such as cheese, have already undergone a transformation from their original state, thus moving them outside the direct classification of farm products. Tangible equipment refers to machinery or tools used in farming but does not include the actual products of that farming. Office supplies are unrelated to agriculture entirely and therefore cannot be classified as farm products. This all reinforces the understanding that farm products are fundamentally tied to the raw outputs of agricultural production, specifically unprocessed goods and livestock.