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| Just my two cents which may be worth less than that.
But I have met that guy when I was down in IA, he is pretty down to earth and spoken well of, which when you pass 4k acres in much of IA is difficult to accomplish.
1. There is any number of ways they could do this, (i am no accountant) but in theory they could be paying themselves in product, or trying to circumvent taxes, get it to the farm. But from the video he makes it sound as if the partnership owns nothing. So if they are adding to infrastructure, it seems that they are dividending out profits to an extent to the partners. then the partners are building the storage (and probably depreciating those 'profits' away to avoid much of the taxes (as most farmers plan)
2. (i think there is only a question in 2b). It would be tough for them to do that without having a backing through their bank which they likely have signed guarantees against. Its just a shell game but i doubt the risk is as lackadaisical as you have made it sound. Although some farms have tried wild approaches like that before.
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This Top Producer finalist looks like has his head screwed on right
