Posted by willie in mn on March 18, 2011 at 10:02:35 from (205.188.116.74):
In Reply to: Grain Train posted by Eric in IL on March 18, 2011 at 07:36:35:
Lots of valid points below, plus electronic banking. Local small -medium elevator has to pay farmer when grain is received. Also has to pay interest on that borrowed cash until delivered to large terminal or processor & receive payment from there. Accumulate enough in bins to fill a truck, ship it out, deliver to processor in a day or less. With modern banking get their money back in a day or two. Or- hold up to a week or longer to accumulate enough to load a train, up to a week travel time, then get paid. Interest on hundreds of thousands of dollars adds up to big money over a year. Quick turn over = less interest on borrowed money, more than makes up for lower freight costs of using rail. Willie
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