Columbia Basin, Ephrata, WA | NE Ridger - 5/24/2020 17:11
Oh, I know it is, but he specified corn/soybean operations with working capital equal to one year's gross. That just seems like a lot of grain in the bin for a normal practice.
I suppose it's guys that don't want to sell anything that they don't have in the bin and always want to have some on hand for that 2012 rally. If it works for them, that's great.
Pretty much all of the “no debt, ever” type of corn/soy operators are going to have to maintain WC over one year’s gross even if they never store anything. They’ll need well over one year’s gross if they do want to store some gambling bushels or if they ever intend to buy something substantial.
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Nosy finance question
