{"id":590,"date":"2023-11-14T21:00:57","date_gmt":"2023-11-14T21:00:57","guid":{"rendered":"https:\/\/welcome.combyne.ag\/resource-centre\/?p=590"},"modified":"2023-11-17T16:12:46","modified_gmt":"2023-11-17T16:12:46","slug":"marketing-your-grain-when-you-want-to-not-when-you-have-to","status":"publish","type":"post","link":"https:\/\/welcome.combyne.ag\/resource-centre\/marketing-your-grain-when-you-want-to-not-when-you-have-to\/","title":{"rendered":"Marketing Your Grain When You Want To, Not When You Have To."},"content":{"rendered":"

Agriculture has went through a transition in recent years and we are in an environment of higher cost of operating capital, higher variable costs, growing costs of fixed debt and volatile markets. The modern grain operation needs to be prudent of managing cash flow in the years ahead.<\/p>\n

This problem is not unique to farming, but needs to be managed properly. The risk of insolvency can sometimes be greater than the risk of bankruptcy. One needs to be able to manage cash flow to ensure creditors are paid on time and possibly early, in terms of operating loans, to minimize interest costs.<\/p>\n

Throughout the past decade, access to capital has been relatively affordable and available. Cost of borrowing plummeted during the pandemic to ensure continued business investment and help keep calm in the marketplace. It was not until partway through 2022 that many central banks began to raise interest rates to help battle the other problem we have found ourselves facing; inflation.<\/p>\n

Prime rate at Canadian chartered banks fell to 2.45% during the pandemic and stayed around 3%, give or take, for the majority of the decade prior. Prime rate has jumped to 6.7% at most institutions following the last rate announcement from the Bank of Canada in January. Next announcement is set for March 8th, although it is still up in the air whether there will be a pause or another hike.<\/p>\n

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Table of Contents<\/p>\n