Input Capital-Armegedon??

[LEP]

I thought that 3.3 million interest on 8 million sounded excessive, but a quick calculation based on 3.5 years, and assuming the entire 8 million was the original capital, works out to just over 10% per year compounded.

It is probably worse than that, since the 8 million likely doesn't all date from 2014, but grew over the 3.5 years. But still not near payday loan rates. If one assumes they are lenders of last resort, and therefore taking on riskier loans, then getting at least double bank rates doesn't seem completely unreasonable.

But if they are secured by both land and grain, then the risk should be very low eventually, as compared to a payday loan.

Edit to add, that I negelcted to include grain already delivered under input capital's name, which is unknown to us. Assume that went to interest first, not principal, so the rate would be worse than 10%.

Actually the way I read it, the interest was $3.3 million on an original principal of $4.5 million for $7.8 million total. Depending on details on the original disbursement and the payment from seized grain, I come up with 16ish % interest.

This loan likely involved the payout of operating loans and input accounts that weren't revolving and had built up from past losses. When faced with the option of an auction sale versus a hail mary, some choose the latter. The only saving grace might be; has the land they owned appreciated enough since 2014 to cover the $3.3 million in interest as the $4.5 million principal was owing anyway.

In my area land has increased between $900 and a $1,000 an acre in that time. So if they owned 4,000 acres or more, they are money ahead. The best course of action would have been to get in front of the situation and control the sale of assets to maximize the sale price.

[Oliver88]

Stock price is $1.50, close not far off a year low.

[iceman]

Stock price is $1.50, close not far off a year low.

The last time it was here the boys came into be a bid for the asks. Maybe they will again but there appeared to be some inside selling a month back.

Iceman Out with the Lear jet in with a paper airplane built wrong which flys back at you and hits you in the face.

[farmaholic]

The last time it was here the boys came into be a bid for the asks. Maybe they will again but there appeared to be some inside selling a month back.

Iceman Out with the Lear jet in with a paper airplane built wrong which flys back at you and hits you in the face.

LOL...belly laughing. Chuckling.

[farmaholic]

The last time it was here the boys came into be a bid for the asks. Maybe they will again but there appeared to be some inside selling a month back.

Iceman Out with the Lear jet in with a paper airplane built wrong which flys back at you and hits you in the face.

......multiple income streams.....taking people's money in more than one way. There's got to be a motto in there somewhere!

Or "STREAM your canola with us and be up Shit Creek without a paddle!"

[Tucker]

The page view count for this thread is very interesting. Many times more views here than most other threads. Very telling to know that other entities will finally pay attention to what farmers say when they think there is a very good chance at getting into their wallets.

[WiltonRanch]

So ever since people here started talking about Input Capitol we have all come to the conclusion it is sketchy and credit of last resort. I have lost a lot of respect for John Gormely whoaring his voice and trust of farmers for these sharks. It’s shaping up like the land bank but ultimately land will lie most probably in foreign hands instead. Enter the Chinese

[Farmhouse]

Input capital is officially getting sued!!!

It's official , input capital is getting sued by a large group of people and the CBC media news on this lawsuit!!!