Releasing its financial results today, Agricore United CEO Brian Hayward said farm input sales will improve this quarter.
"Good moisture conditions across western Canada will encourage maximum use of the productive capacity and the impact of significant crop growth last year indicates a need for fertilizer products this year.
"In addition, the combination of high rates of collection on last year's credit programs and the positive credit profile of the Company's farmer customers suggest that the delays in customer purchasing decisions are operational rather than financial, as farmers weigh final planting decisions against demand signals from the world commodity markets."
Is he right? Average returns from ag commodities are at 1999 levels and profits for most farm supply companies are at 2006 levels. Will you max farm inputs to maximize yields and volumes of grains and oil;seeds available fro sale in 2006-07 . . . or will you minimize farm inputs to conserve cash?
"Good moisture conditions across western Canada will encourage maximum use of the productive capacity and the impact of significant crop growth last year indicates a need for fertilizer products this year.
"In addition, the combination of high rates of collection on last year's credit programs and the positive credit profile of the Company's farmer customers suggest that the delays in customer purchasing decisions are operational rather than financial, as farmers weigh final planting decisions against demand signals from the world commodity markets."
Is he right? Average returns from ag commodities are at 1999 levels and profits for most farm supply companies are at 2006 levels. Will you max farm inputs to maximize yields and volumes of grains and oil;seeds available fro sale in 2006-07 . . . or will you minimize farm inputs to conserve cash?
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