Ain't it nice

[elcheapo]

To have wheat low enough for a ldp
To have the harvest price set for revenue
Insurance $1.00 higher than local market
Price......
And DESPITE what you read..... everywhere
Did NOT have record yeilds

And record wide basis.

Please don't tell me how it isn't the elevators fault.

I've did my homework....this is going to be
A good year for them.

Not only are they frankly misstating their prices
And cost.....(esp the terminals)

I noted on a quote on SF from a coop manager
How good the test weight and protein was.....

Who do you think gets the premium

And don't tell me they have to make up for poor
Quality.

I've got news.....ever look at your scale tickets
They dock for everything....then blend it out
And make even more

And we OWN the coops

Ask a few questions

[timetippingpt]

elchappie...we haven't delivered grain to the local coops in 50 years. Built our own facility because we could make more storing and merchandising our own corn than we could growing it. With the exception of a few years in the last 50 that is a true statement. Just finished installing a new, bigger dryer, so we can handle more local grain than we grow.

We have never felt that we owned a coop, we viewed it as "capital trapped in a poor performing investment". 🙂

[elcheapo]

Well put about "investment quality"

[Shaggy98]

Cheapo, don't you realize those are the very reasons we receive our large patronage checks once a year.  

[JCCWIS]

And here in our "Hood " the best Coop's use your money for 10 years before the deflated dollars are returned........and after 20 years the weaker coop's checks show up !!!!!!

 Of course they are merged  " Now " so with all money spent for new more efficient facilities do not expect any better management.....they will need to use that interest money even longer !

John

[Shaggy98]

Agriculture is definitely a tough business, it doesn't seem to madder if you're a producers or just another link in the supply chain.  Seems that unless you are selling one of the initial inputs (seed, fertilizer, pesticide, etc...) it has become an even more aggressive business strategy of "Kill or be Killed".

Bigger is not always better, but it is undoubtedly the game at play now.  Being in control of your own decisions allows us to play the hand we are dealt without the need to constantly turn to the dealer (banker) to ask for additional cards.  I've always run a debt free operation but find myself with a small debt load at this time.  Nothing that my current assets won't cover, but just enough to offer a little cash flow breathing room to pounce on an opportunity should it such arise.