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3/30/2020

Corn Demand in COVID 19

What Do We Know About Corn Demand In A Covid-19 Environment?
12/1/2019 Risk Management

What Does $30B Look Like?

China has apparently offered to purchase an additional $30 billion of US agricultural products as part of the new trade agreement. That sounds amazing! The additional purchases would apparently encompass ten commodities. I say apparently, because like much of the China trade news, it lacks any detail and substance and leaves us guessing the impact. The impact could be that China is "buying off" the US trade negotiators. "Buying off" is a term used this week by Secretary of Agriculture – Sonny Perdue. So, we ask the question: what does it look like? Would it mean China is buying US corn or wheat? Does it mean China is consuming more – that's what's important – will it be new demand?
12/1/2019

Valuation of Complex Securities - Monte Carlo Simulation - Convertible Securities

We are a full service, independent valuation firm that advises clients with valuations of complex securities. In an era of increasing use of fair value measurements, we help public and privately held companies, private equity and venture capital firms successfully manage their financial reporting valuations.
12/1/2019

Real Physical Commodity Solutions

We Identify risks to market value and cash flow related to price, volatility, tenor and volume to protect profit margins and identify and quantify the value of known and unknown risks. Understanding event risks and valuation impacts related to changes in commodity markets, regulation and financial instruments is an area where we specialize.
12/1/2019

Prevented Plant Feature Becomes DeFacto Set-Aside Program

Normally crop insurance has a propensity for overproduction. These are not normal times. This year it is the opposite. A feature of crop insurance covering nearly 90% of Midwest farmers is creating a paid set-aside which is distorting the grain market. It is forcing the market to bid against the prevented plant (PP) payment to offset the damage created by Mother Nature. The impact is unintentional and is only exposed by the extreme delays in 2019 planting. Those of you under the age of 40, google set-aside policy to see how US Ag programs of the 1970’s and 80’s promoted production for non-US producers. South America is a major benefactor of the recent market rally, as they were back in the 70’s and 80’s. PP forces the market to bid until enough planting is complete. Will planting proceed enough this week or will it push into July? What will Mother Nature dictate? More importantly, what happens to prices once the bidding is done? How many will suffer “Buyer’s Remorse”?
12/1/2019

10 Ways a Fractional CFO Can Solve Your Company’s Financial Dilemmas

The Chief Financial Officer (CFO) of a company is a C-level executive responsible for understanding the financial position, developing financial strategies, and reporting financial information. There is no doubt that a CFO makes an enormous contribution to a company. However, micro-cap public companies and other privately held businesses may be at a point were they need the expertise but are not yet ready to hire an in-house full-time CFO. In many cases, companies such as these are hiring Fractional Chief Financial Officers (“F-CFO”). There are a variety of benefits to hiring an F-CFO, as opposed to the traditional CFO.
12/1/2019

Recognizing Toxic Debt And Exploring Viable Alternatives

Debt can be a powerful tool to raise the money needed to fund the growth and expansion of your business. However, debt, as we all know, can also be dangerous, especially when you're unable to pay it off, for whatever reason. If you borrow too much and your business does not perform as expected, the debt can quickly become toxic. Many people don't understand what toxic debt is and why they should avoid borrowing money under such onerous terms.
Vine Advisors