How to Manage Financial Risk

摘要

Agribusiness has experienced a notable number of upswings in recent years. Grain price hikes, increased crop sizes, higher yields, skyrocketing land values, expanded capacity — you name it, agriculture has experienced it. Grain elevators in particular have been able to seize the opportunities of volatility to become more profitable. Agriculture's gains have also had a direct impact on the institutions most invested in its success: the ag banks. "Financing needs have grown dramatically the last few years," says Galen G. Herr, regional credit officer, Rabo AgriFinance. "The volatility and financing cycle for inventory has been affected by price volatility. You may have higher spikes in the peak financing needs for [grain elevators] during the courseof the year — much more than what we have seen in the past."