KEY BENEFITS:

  • 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.