US 2014/0279343 A1Published application

Streaming production of agricultural commodities

AssigneeInput Capital Corp.

InventorsBrad Farquhar, Doug Emsley, Gord Nystuen, Patricia Warsaba

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Abstract

A novel method for financing in production of agricultural commodities. A contractual framework between the agricultural producer and a capital provider is defined by consideration of a minimum guaranteed yield and net price for the crop within a particular crop season. Before the commencement of a crop growing season, the parameters of a crop cycle including a guaranteed minimum yield and a net price are generated by a crop production computer software program, and are agreed between the farmer and the capital provider. During the growing season the capital provider pays for all of the required crop inputs while the farmer grows the crop. At the conclusion of the growing season, the farmer delivers the crop production to the capital provider and is paid the agreed net price in respect of the complete volume produced, hedged by the guaranteed minimum yield. The net payment due to the farmer can also be calculated by the crop production computer software.

Claims14

Dependent claims

A method of production of an agricultural crop within a crop season by a farmer and a capital provider, said method comprising the following steps:

a. before commencement of the crop season:
i. defining a crop cycle, being a crop to be grown in a particular crop season on a crop production area;
ii. defining a guaranteed minimum volume yield for the defined crop cycle;
and
iii. defining a volume based net price to be paid to the farmer;
and
iv. creating a contract between the farmer and the capital provider for sale of the crop produced during the crop cycle, wherein the capital provider agrees to pay a net payment being the greater of the following to the farmer upon delivery of the crop at completion of the crop cycle:
ii. the guaranteed minimum volume multiplied by the net price;
and
ii. the net price multiplied by the actual volume of crop produced;
and wherein the capital provider agrees to pay for all of the required crop inputs during the crop cycle;
b. on commencement of the crop season of the crop cycle, the farmer planting and proceeding with production of the crop throughout the crop season, wherein during the crop cycle the capital provider pays for all required crop inputs;
c. at the conclusion of the crop season:
i. harvesting the crop and selling from the farmer to the capital provider all of the crop produced in the crop cycle;
ii. Calculating the net payment due from the capital provider to the farmer, based on the contract;
and
iii. Rendering the net payment due from the capital provider to the farmer.

14 more elements

Dependencies are inferred from the claim text.