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Input Capital-Armegedon??

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    Input Capital-Armegedon??

    Hearing some very scary news about this Company and what they are doing to farmers. Still they continue to go to farm shows and sign new people up. With social media the way it is these days, how long before people speak up and word gets out that results in the shutdown of this business? What’s true? What is false? How’s the saying go? “A lie goes halfway around the World before the truth gets its shoes on?” Anybody know the truth as it could be helpful to others on this forum.

    #2
    Why even go there? If that is your last resort for credit it may be time to rethink what you're doing. Getting credit in exchange for security AND a reduced value for a commodity you grow...is that a recipe for success?

    Lots of "suits" getting paid...

    No one forces anyone to use their service.

    Coming in on the other side of the argument, is it really Inputs fault the contract holder didn't/couldn't fulfill contract obligations? Banks and Credit Unions would probably do the same. Why couldn't the guys get credit from one of the easiest sources and whose mandate it is to lend to farmers-------FCC. Is it time to rethink this and lay blame where it should be?

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      #3
      Maybe the banks let them go before they had to do the same thing? Maybe some loans were being called.

      You have to wonder, up to what value do the institutions and Input lend? At these land prices and thinking it might be a bit toppy right now.... In the event of having to foreclose, how many of them want to own land at near the full market price now with the potential for a pull back or correction. Seems when a bank tries to sell foreclosed land..... no one wants to give the bank fair value.

      The gig might be up soon, or at the very least you won't get as much borrowed against security.

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        #4
        All Good points. You have to admit at the increase in land values have been fueled by low cost credit just as much as easy credit and this notion that Sask land was way undervalued....all true. But the heights that we have gone to in some areas....it is as you say a “bit toppy”. Any hiccup in lower grain prices (which some here already complain are too low) or back to back production problems, payments will be missed and the cycle will start again of more sellers than buyers. No fun being the lender/security holder then. The farmers that have started in the last 15 years haven’t seen that. My understanding is that Input has a lot of young farmers that have used their products.
        Last edited by Crestliner; Mar 13, 2018, 07:22.

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          #5
          If you go with input capital ...do you ever see a premium for your canola?

          So if you have guys accepting the lower values ...doesn't that put a lid on prices for a while?

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            #6
            Originally posted by bucket View Post
            If you go with input capital ...do you ever see a premium for your canola?

            So if you have guys accepting the lower values ...doesn't that put a lid on prices for a while?
            Does anyone know if Input Capital speculates on the streaming canola, or is it locked in at a known profit margin when a farmer signs up? Are futures even available far enough out for them to lock it in?

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              #7
              Just perused their Twitter stream and not a single comment, good or bad on any of their posts...

              Apparently they, "buy and sell canola, and so much more."

              Never really looked into them, but from what I've heard the standard security agreement is canola + land? If a producer had equity to borrow against in land, why would you sign it up with these guys vs any other lender?

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                #8
                Yes futures and options are used

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                  #9
                  It sounds to me like this company is along the lines of the urban equivalent “Payday Loans”.

                  I would guess the end game is ownership of farmland?

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                    #10
                    As many have already mentioned, one has to wonder why a farm would turn to this option unless they have no other financing alternatives. Unfortunately, if they had any equity in their farm, it will be less or eliminated now.

                    It is shark rates of interest and slim balls that con farms that don't understand what they are getting into. I wonder why someone contemplating this wouldn't ask an advisor and a good accountant if this is a good option.

                    But from the outside looking in, we think all these large farms are doing so well because all they see is shiny new equipment and 90,000 super duty trucks.

                    Sometimes I wonder what the truth really is. I am sure there are very wealthy farms that operate well but I fear so many are on the edge.

                    Companies like input capital will win at the end unless producers smarten up!

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                      #11
                      "But from the outside looking in, we think all these large farms are doing so well because all they see is shiny new equipment and 90,000 super duty trucks.

                      Sometimes I wonder what the truth really is. I am sure there are very wealthy farms that operate well but I fear so many are on the edge."

                      I am betting the largest Ritchie Auctions are mostly hung by DEBT. Millions in shiny iron, all accumulated too fast. Our tiny operation took 50 of my years and 30 more of parents and grandparents lives.

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                        #12
                        I am betting the largest Ritchie Auctions are mostly hung by DEBT. Millions in shiny iron, all accumulated too fast. Our tiny operation took 50 of my years and 30 more of parents and grandparents lives.[/QUOTE]

                        I would agree to an extent Fjlip. Some might simply be cashing in before the high drops. Some won't have a succession option or health reasons.

                        Others yes, may be "hung with debt", poor management choices and maybe a bit of bad luck. I think one can make your own luck by making good decisions and a balance of risk and reward.

                        I feel very sorry for those involved with Input Capital, now they are stuck with a big bill to get out or 18% interest for 5-8 years

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                          #13
                          Originally posted by Oliver88 View Post
                          It sounds to me like this company is along the lines of the urban equivalent “Payday Loans”.

                          I would guess the end game is ownership of farmland?
                          The RM map here showed a couple sections in Input Capital's name for a while, now that land is in Monette's name.

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                            #14
                            Obviously a racket.
                            May I ask, who is Monette??

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                              #15
                              100000 acre farm based near swift current.

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