3 ms·
Constant borrowing like this isn't uncommon for farmers and other agricultural producers. You need to pay for things like feed, seeds, livestock, fertilizer, el
by talideon 12y ago
Constant borrowing like this isn't uncommon for farmers and other agricultural producers. You need to pay for things like feed, seeds, livestock, fertilizer, electricity, machinery, &c., every year, and that's a large capital outlay, and they have to wait a long time to be able to deliver on that, be it harvest, lambing season, whatever.
It's things like this that lead to the creation of futures, and effectively, that's what these farmers and Credem are engaging in.
- masklinn 12y ago> Constant borrowing like this isn't uncommon for farmers and other agricultural producers. Or companies, for that matter.
- talideon 12y agoTrue, and that's one of the reasons futures contracts spread beyond the agricultural sector, where they originated. The key difference with agriculture is that it's really easy to see how futures work--it's the model sector for futures--whereas in other sectors, they can be somewhat more nebulous.