Canola specials

[Hopperbin]

With breaders competing I am thinking a planting seed price drop is in order. My pioneer seed did pretty good in all. So thinking I can buy it from coop paid in full july 2015 for cheap as now.plus not sure growing it so on sidelines. Next year country will need tax deduction next year. Like klause says a lot of crops are pencilling out good next year. Haha. Then again if everything falls into place like that ever happens. Growing crops is a life long learning process.

[Hopperbin]

With breaders competing I am thinking a planting seed price drop is in order. My pioneer seed did pretty good in all. So thinking I can buy it from coop paid in full july 2015 for cheap as now.plus not sure growing it so on sidelines. Next year country will need tax deduction next year. Like klause says a lot of crops are pencilling out good next year. Haha. Then again if everything falls into place like that ever happens. Growing crops is a life long learning process.

[farmaholic]

The seed companies and canola buyers will only lift the sole of their boot off your neck when you turn purple and start gasping for air. And then only long enough for you to catch your breath so you can produce another crop all over again next year, because they need you.

Why don't these seed companies and buyers rent(or buy) the land and grow it themselves for the "commodity" market? Because they have you taking all the risk. Doesn't "verticle" integration reach that low?

Seed companies will never give up "what they worked so hard to gain" they will squeeze supply and create an artificial shortage to maintain their margins. What a novel idea.....

[Hopperbin]

Which is why the Input and seed supliers wish to separate themselves from crop sales.

[hobbyfrmr]

Farmaholic, you may be onto something. There are some really big farmers in my area. Excellent top producers, consistent and efficient. Their cop is like 15 million, and 7 million etc.
I have often wondered if behind closed doors they are just doing custom work for Cargill, or Dreyfus.
It's way easier to pay for good farming and 12. Btrains a day from one phone call, instead of pissing around with a bunch of little guys trying to peddle their 4 or 5 loads per year.
There is no reall indication this is happening, just an empty musing of a jealous neighbour!

[hobbyfrmr]

I also regard input capital corp. in this manner. They supply you inputs so you can be "progressive" and expand. You take all the weather and production risks. If it doesn't work out, they have your land.
I have shares in them, I just can't see it going wrong for them. Worst case scenario, a few guys fail, INP.V ends up with title of the farmland, and can now offer the land to rent and inputs to the next "progressive" farmer. Best case scenario the "progressive " farmer grows kick ass crops, pays back INP.V and they sell their share into the market. More progressive farmers are attracted to INP.V and they supply more inputs and sell more of their crop onto the market. Win win.

[furrowtickler]

Hobby , you are correct with more than a few in this area between you and I . But the relationship is very strained right now with shit quality grains comming of those farms that has to get pushed through their doors . A lot of lip quivering goin on behind those doors after grading

[Hopperbin]

In a sense the farmers indebted to input capital likely had it easy come. So now it is easy go. My opinion. Anyone who worked for it likely is smarter.

[bgmb]

Hurry hurry give your free call options to the grain companies in this rising market. Dont miss the special deals

[bgmb]

Cant believe farmers are stupid enough to give away call options to grain companies for free.

[Hopperbin]

What are you talking about. A call option is directly tied to a futures price. Target and basis tarvets and special pricing is separated.

[hobbyfrmr]

Hopper,
Not necessarily/automatically easy go. If the farmer is successful, (and I am sure he plans to be successful) and grows kick ass crops, they will succeed. Then INP receives their money back and a share of the crop to sell. The laws of attraction will encourage more progressive good farmers to utilize their goods and services.
I don't always see everything going badly, or negative. I just try to see all sides of things. BUT, if it goes bad for the farmer, INP will have his land.
It's all about the land. I think Emsley and Farqhuar had good success with Assiniboa Land Corp. This is a different, yet very similar play.

[Hopperbin]

Hobby can you explain to me how it works in more detail? I have no idea but it sounds all bad. Klause may have for example the best ever on paper farming method. So if klause just an example dealt with these dinks what part of his crop does he hand over a percentage or dollar value. Does he have to sell and take cgc grades or can he negotiate. Sounds like something to invest in not deal with.

[farmaholic]

bgmb is simply implying, by us signing a target price agreement, we are committing tonnes at a specified price with the buyers "option" to purchase before an expiry date, at no cost to them.

Then there is the futures or basis first contracts that lock you in with them. Not saying these never work for the seller but.... if they have enough committed tonnes In futures first contracts to match sales what are the chances of a basis improving to entice
business? I think its the same with basis only contracts, you're committed and they don't need to "participate" in the futures market to get the grain,
they know it will be coming up the driveway unless you roll the contract.

Then there's the request of early delivery of a future contract, what does that signal?

Someone tell me if I'm out to lunch

[hobbyfrmr]

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