Sharks circling the boats

[iceman]

From the latest INP quarter press release

"We continue to progress as planned on the collection of our inactive streaming contracts. On the largest of the three collections, we now hold titled possession of approximately 5,000 acres of farmland which is rented out for the 2016 farming season, and we have concluded two successful farm equipment auctions with total gross sales of approximately $5 million, exceeding the expectations of the auctioneer. The other two collection processes associated with terminated contracts continue to proceed as expected.
As part of our efforts to reduce concentration risk in the portfolio, we exchanged $8 million of future canola streaming delivery obligations from one of our large farmer partners in return for land of equivalent value—having the net effect of buying down his streaming obligation and reducing Input’s portfolio concentration risk. This land will be sold and the funds will be used in the company’s future deployment efforts. This is prime farmland, and we have had many calls from interested buyers already."

i believe SF3 initially said it was a land play 3 years ago. You were correct my wingman

Watch you're 6. Iceman out

[furrowtickler]

Agree 100 %

[hobbyfrmr]

"buying down his streaming obligation" ...... Such beautiful language.

Who the **** signs over 8 million dollars worth of land to grow canola?

[Guest]

obviously someone who came across it very easily !

[farmaholic]

I've changed my mind from calling it "credit of last resort" to "credit under no circumstances".

Hard to believe this is legal but I guess the signatories are "BIG BOYS"(holy**** pardon the pun) and fully understand the "depth of their debt"(in over their heads and barely treading water)....but farming is a cruel way to make a living....Mother Nature takes no hostages. I guess the "solid as a rock" PFD Input threw out to them couldn't "save" them......

I better quit.....it actually isn't funny.

[stonepicker]

How can you call it a land play when they turn around and sell the land back to other farmers? Pay your bills and you will never have a problem!

[hobbyfrmr]

Maybe I should say it slower....8 million dollars worth of farmland.

8 million.

Wow.

I am so far out of understanding this style of farming I don't even want to know how it works.

[farmaholic]

Stoney....it's a play when the Creditor may have only lent 75%(or what ever %) of its value "at the time" and it has since appreciated substantially. CASH IN YOUR CHIPS BOYS....WE WON THAT HAND!

[stonepicker]

If your financing with input capital, your already basically done. It's a hail mary pass, sometimes it works, most times it doesn't.

[iceman]

I've changed my mind from calling it "credit of last resort" to "credit under no circumstances".

Hard to believe this is legal but I guess the signatories are "BIG BOYS"(holy**** pardon the pun) and fully understand the "depth of their debt"(in over their heads and barely treading water)....but farming is a cruel way to make a living....Mother Nature takes no hostages. I guess the "solid as a rock" PFD Input threw out to them couldn't "save" them......

I better quit.....it actually isn't funny.

Roger that farmaholic

I like to think the larger operators are pretty sharp and I'm sure most are. But clearly a few are as dumb as a post.

This industry needs a good old fashioned house cleaning. Burn the bitch to the ground and rebuild without all these leaches. It's setting up to be quite the hard landing if prices stay the same or head much lower. Yields are one thing but these costs are right out of control. Mix in some $120 acre rent, recreational fungicide apps, marketing cost, variable guessing fertilizer, iron leases and things get very Fing interesting.

Credit has been way far to easy for far to long. Look no farther than the FCC buy now pay March 2017. Complete joke. The system is designed to keep the farmer one month behind on bills.

Let the bitch burn

Iceman out

[iceman]

The 8 million might actually be the gross amount left on the contract. They work on roughly 18% return on investment. Of course the canola futures price can increase it or decrease it over time.
So 18% of 8 mill = 1.4 million

Publishing the gross amount is just basically investor window dressing but either way this farmer is still not very bright.

Oh ya a few Qs ago they signed a 12 year stream!

I repeat 12!

A decade plus two years!

A case of beer in which a single beer represents one years canola delivery!

Still following?

Burn the bitch

Iceman Out

[farmaholic]

But, but, but the collateral damage would be far too reaching. Too many casualties if the Goose that lays the golden eggs dies. Gotta keep that hub greased and in good shape.... the whole ****ing wagon depends on it! Can't have the wheels falling off..... can we?

De-ice or you risk take off.

[mcfarms]

Many here correctly called input capital for what they were right from the start , nice job boys.

[ajl]

These guys are so slick they are going to make the mafia envious.

[blueversi]

No fancy suits or office just put the coffee on, no more skimping on inputs it is guaranteed to make you rich. They are there for you. Sleazy.