Posted 9/7/2014 09:05 (#4060299 - in reply to #4060188) Subject: RE: You're probably right, Maizeing but ....
Ontario's middle east
Wasn't trying to find fault, did find it interesting. I didn't respond as I'm not sure my situation is relevant. My reply likely shows a slanted view from being in the elevator biz. I always thought cropping took a lot of cash until I got in the elevator biz. When a year like 2012 comes along you learn a lot about the value of working capital when trying to hold hedges on forward contracts......Experience that may be relevant to croppers losing working capital in to big rent contracts. Our grain operation is only 1500 ac..... A small amount in comparison to our millions of bu in grain handle. We are not using any borrowed money to finance farming operations. In fact, there is a lot of cash piled up in the grain biz in general right now. There are not a lot of forward contracts out there to hedge and we are on the right side of every single hedge. Considering the fact that we were able to keep our snorkel upright in aug 2012, let's just say this is easy street. I actually like the volatility and sincerely look forward to putting cash to work margining positions on the way back up.
Self financing poll below
