High Cotton provides Agricultural Processors an innovative program to deal with the massive demands on capital they face in order to efficiently operate their facilities. Let High Cotton carry your inventory until you are ready to process and sell it, all the while leaving you in full control of the product. While many Processors may have the financial capacity to carry their annual inventory, this allocation likely does not represent the highest and best use for your available capital resources or your balance sheet. For others, high inventory capital requirements can severely limit their ability to conduct business at to the scale desired.
Our program is simple, time tested and commonly used in many other industries. If your product is already or can be stored in an approved and fully insured warehouse, that has the ability to issue negotiable warehouse receipts (NWRs) in a form acceptable to High Cotton, we can place that product into the High Cotton program. Upon transfer of the appropriate ownership documents to High Cotton, we provide you a cash payment representing a slight discount to Fair Market Value and the contractual right to repurchase the product at a mutually agreed future point in time. When you are ready to process and sell the product, you pay High Cotton the agreed upon repurchase price and we transfer title of the stored product back to you. It is that simple!