Posted 2/21/2021 08:27 (#8848106 - in reply to #8847544) Subject: RE: Educate me on grain elevators
North Central Illinois
In order to make much money on grain as an elevator you need a grain merchandiser that knows what they are doing. If all that is going on is the General Manager is just back to backing the grain they buy from customers they are not going to make enough money to build new storage or make other upgrades. Trading basis and selling the carry is how they make money but they also better have someone sharp on board to do that. Late fees are great until you get stuck by one big account that costs you more than you made off of all of the other ones for the last couple of years. The money made off of late fees is a way to discourage people from not paying their bill. It isn't a business model.