USA | MD GenX - 9/25/2021 19:33
Are you building working capital this year? With current prices if you have average or better yields I would think you could increase your working capital from normal operation.
If you are VERY fiscally disciplined your idea has merit and may work.
But in general it seems to me borrowing against a fixed asset with a term loan to increase working capital is not a good idea.... at least for me. In my previous job if one of my customers requested such a loan I likely would have questioned their motives.
However, I applaud your thinking outside of the box.
Should not have been too hard to gain @ least$150-$200 acre working capital from 2020 and 2021 crops . The opportunity was there to strengthen ones liquidity, looks to me like too many have squandered the opportunity.
IMO first mistake was trading a 7120 for the 180 and creating more debt, when the lenders have 60% skin in the game. Unless the 180 generates enough extra income to make the required yearly payment.
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Creation of working capital
