This morning Thomson Reuters published an article titled ‘US Farmers Tighten Belt to Compete with LATAM Grain’…and this caught our attention.
It is no secret that subdued grain prices have pushed producers’ revenues lower while still having to compete against even cheaper producers in Argentina and Brazil.
In addition to grain prices, farmers face massive overhead in labor, fuel, and electricity which accounts for 14.5% of their costs.
It is not a glamorous time for production and farmers are also finding themselves in a rut over their hedging strategies. As we discuss Pack Creek Capital with producers globally, the general consensus is that innovation has been stagnant and hedging strategies are not effectively improving producers’ margins.
At Pack Creek Capital we are offering a solution to this. In addition to agriculture we are also offering hedging strategies in energy. We are marketing throughout Europe and the Midwestern United States this quarter. Please reach out for more questions or for a meeting.