In re Vander Vegt, No. 12-02144, 2013 Bankr. LEXIS 4354 (Bankr. N.D. Iowa Oct. 16, 2013)

(debtors operated a dairy farm they purchased directly from lender one, executing a security agreement granting lender one a blanket security interest in land, equipment, and livestock; debtors defaulted because of milk production problems; in resulting bankruptcy proceeding, debtors filed a motion to incur secured debt from lender two to construct a waste storage facility and a rotational grazing facility; In conditionally granting motion under 11 U.S.C. §364(d), the court ruled that debtors were providing adequate protection to lender one by providing an “indubitable equivalent” of lender one’s interest in the property; court relied on the facts that (1) new loan was short in duration, (2) projects financed by loan would likely increase the value of the collateral, and (3) grant payments would likely pay off the priming lien). 

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