OTCPK:INPCF - Post by User
Comment by
creaturecomphorton May 08, 2017 2:18pm
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Post# 26217242
RE:RE:RE:Input Capital will struggle to redeploy its cash
RE:RE:RE:Input Capital will struggle to redeploy its cash Agreed. However, the barrier of entry to farmers already under contract with Input Capital would be close to nil. Therefore, entering new contracts with different crops would chew up little overhead. With capital becoming more readily available this would offer a low-lying-fruit opportunity IMO.
And given 2 out of 3 years are probably not going to be planted in canola, the farmer will use traditional banks those 2 years. Seems like it would be pretty east for farmers to just fall back into the old habit of bank financing. For that reason alone it may be prudent for Input to apply the royalty model to other crops, just to keep the farmer "inhouse."