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Canola specials

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  • hobbyfrmr
    Senior Member
    • Feb 2008
    • 3178
    #21
    I also regard input capital corp. in this manner. They supply you inputs so you can be "progressive" and expand. You take all the weather and production risks. If it doesn't work out, they have your land.
    I have shares in them, I just can't see it going wrong for them. Worst case scenario, a few guys fail, INP.V ends up with title of the farmland, and can now offer the land to rent and inputs to the next "progressive" farmer. Best case scenario the "progressive " farmer grows kick ass crops, pays back INP.V and they sell their share into the market. More progressive farmers are attracted to INP.V and they supply more inputs and sell more of their crop onto the market. Win win.

      Comment

      • furrowtickler
        Senior Member
        • Dec 2004
        • 22073
        #22
        Hobby , you are correct with more than a few in this area between you and I . But the relationship is very strained right now with shit quality grains comming of those farms that has to get pushed through their doors . A lot of lip quivering goin on behind those doors after grading

          Comment

          • Hopperbin
            Senior Member
            • Dec 2007
            • 6562
            #23
            In a sense the farmers indebted to input capital likely had it easy come. So now it is easy go. My opinion. Anyone who worked for it likely is smarter.

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              • bgmb
                Senior Member
                • Jan 2007
                • 1645
                #24
                Hurry hurry give your free call options to the grain companies in this rising market. Dont miss the special deals

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                  • bgmb
                    Senior Member
                    • Jan 2007
                    • 1645
                    #25
                    Cant believe farmers are stupid enough to give away call options to grain companies for free.

                      Comment

                      • Hopperbin
                        Senior Member
                        • Dec 2007
                        • 6562
                        #26
                        What are you talking about. A call option is directly tied to a futures price. Target and basis tarvets and special pricing is separated.

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                          • hobbyfrmr
                            Senior Member
                            • Feb 2008
                            • 3178
                            #27
                            Hopper,
                            Not necessarily/automatically easy go. If the farmer is successful, (and I am sure he plans to be successful) and grows kick ass crops, they will succeed. Then INP receives their money back and a share of the crop to sell. The laws of attraction will encourage more progressive good farmers to utilize their goods and services.
                            I don't always see everything going badly, or negative. I just try to see all sides of things. BUT, if it goes bad for the farmer, INP will have his land.
                            It's all about the land. I think Emsley and Farqhuar had good success with Assiniboa Land Corp. This is a different, yet very similar play.

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                              • Hopperbin
                                Senior Member
                                • Dec 2007
                                • 6562
                                #28
                                Hobby can you explain to me how it works in more detail? I have no idea but it sounds all bad. Klause may have for example the best ever on paper farming method. So if klause just an example dealt with these dinks what part of his crop does he hand over a percentage or dollar value. Does he have to sell and take cgc grades or can he negotiate. Sounds like something to invest in not deal with.

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                                  • farmaholic
                                    Senior Member
                                    • Sep 2010
                                    • 17483
                                    #29
                                    bgmb is simply implying, by us signing a target price agreement, we are committing tonnes at a specified price with the buyers "option" to purchase before an expiry date, at no cost to them.

                                    Then there is the futures or basis first contracts that lock you in with them. Not saying these never work for the seller but.... if they have enough committed tonnes In futures first contracts to match sales what are the chances of a basis improving to entice
                                    business? I think its the same with basis only contracts, you're committed and they don't need to "participate" in the futures market to get the grain,
                                    they know it will be coming up the driveway unless you roll the contract.

                                    Then there's the request of early delivery of a future contract, what does that signal?

                                    Someone tell me if I'm out to lunch

                                      Comment

                                      • hobbyfrmr
                                        Senior Member
                                        • Feb 2008
                                        • 3178
                                        #30
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