- Realize higher commodity prices
- Access liquidity at the time of harvest
- Maintain control of your crop throughout the 2nd year marketing period
- Lower risk
- Sell when you want to for the price you want- Market timing
- Increased marketing leverage
- Balance sheet enhancements-reduced debt-now only “net asset” value
- Reallocate equity resources to highest and best use (new land or equipment) that will generate a better return than just carrying inventory.
- In many cases, your inventory carry cost will be reduced in comparison to a typical production loan.