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08-31-2017 12:08 AM
Im betting heads will roll in companies like CHS, Ceres, and Green-mark before this is over. That doesn't include all of the land owners. Land owners down the road from me leased to Boersen this year, cash up front only. Will some of the rent money be collected to pay CHS? This ship is going down, how many will go down with him is my question?
Greed got everyone to this point, I don't feel sorry for any of them.
08-31-2017 06:27 AM
08-31-2017 06:46 AM
They can easily do it IF they file bankruptcy. Paying the landlords was basically fraudulently
cheating the secured creditor out of his position. This is common practice in bankruptcy law.
It does not mean the judge has to do it that way though, each case is different.
Fast growth, low capital business models never work in grain farming, asset turnover
is way to low to support the growth rate. Simple math.
08-31-2017 08:25 AM
Can you cite some case law for taking back the rent payment, please? I've not been able to find any example of going after rent on a quick search.
08-31-2017 08:44 AM
Jim, I don't know if you actually watched the link, but this was the guy Ive been posting about for a while. This operation farmed most of the land owned by Ceres group in my region. Farming over 100,000 acres and having 9 million bu storage capacity spread out over multiple locations and he still couldn't make it work. This is why large grain companies will stay out of production ag.
To answer your question though, I don't know about the land rent being collected to pay CHS in the event of bankruptcy. This guy didn't take any land from me but he out-bid most of my neighbors on ground and definitely had a negative effect on my seed selling business.
08-31-2017 09:05 AM - edited 08-31-2017 09:36 AM
He farms almost all the land around me. I am old and rent to another farmer. I kept up with the Stamp deal and it looked like the FED'S. let him get what he wanted. Also I see that some of the Stamp land that he got now belongs to Ceres. Now we have to wait and see what the Fed's do now.
08-31-2017 10:21 AM
I understand your situation. When the sick elephant falls over, lots of innocent bystanders can get harmed or even crushed through no fault of their own.