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n. Illinois | so far the score this year is 6 and 15, Six have been profitable and 15 have lost money. The average loss has been about 7% of the overall gross and it works out roughly $180/ac. somewhere between 80-100% of the loss is due to carrying inventory at $4.xx/bu vs $6.xx/bu on corn at the end of the year. Some operations have destroyed their working capital with the losses and capital spending. All operations are having much tighter repayment margins due to lower prices and many have taken on much more term debt than just a year ago so not only is the returns going to be less they have to make bigger payments than before. This is where you get into trouble. I have heard about the large operation in N. Illinois filling BK too. think of how bad off they had to be given the past three years of outstanding earnings most operations had to have. | |
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Boersen is not alone
