Case Study
Negotiating for a Grain Elevator Purchase: Valuations of Willingness to Buy and Willingness to Sell
Austin Liepold(a), Marin Bozic(b), and Michael A. Boland(b)
Ceres Global Ag.(a), University of Minnesota(b)
JEL Codes: A21, M21, Q14
Keywords: Agribusiness, case study, finance, oats, net present value
Publish Date: February 10, 2022
Volume 4, Issue 1
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Abstract
North America Small Grains Trading Company (NASGTC) is a North American grain trading company investigating grain elevator location prospects to expand their grain origination territory. In 2021, NASGTC purchased grain at a premium from third-party suppliers or country elevators in North America to fill their terminal space at various locations or directly ship to their small grain (defined as oat, hard red spring wheat, rye, durum, and canola) end-user customers with a focus on identity-preservation to help support consumer label claims. Since its founding in 2013, NASGTC has operated terminal elevators efficiently without any origination locations. The NASGTC is in initial diligence to acquire the assets of a Canadian grain elevator to originate additional oats. The objective of this case study is to determine whether it is economically feasible to acquire a grain elevator to own more of the margin in the oat supply chain.
References
Articles in this issue
Trading Commodity Futures and Options in a Student-Managed Fund
Matthew A. Diersen and Zhiguang Wang
Adaptation of Teaching Strategies During the COVID-19 Pandemic
Luis Moisés Peña-Lévano and Grace Melo
Nudge or Sludge? An In-Class Experimental Auction Illustrating How Misunderstood Scientific Information Can Change Consumer Behavior
Laura A. Paul, Olesya M. Savchenko, Maik Kecinski, and Kent D. Messer
Negotiating for a Grain Elevator Purchase: Valuations of Willingness to Buy and Willingness to Sell
Austin Liepold, Marin Bozic, and Michael A. Boland
Why No Debt? A FRICTO Analysis of the Capital Structure of Cal-Maine Foods Inc.
Carlos J.O. Trejo-Pech and Susan White
The Knowledge and Skills Required to Be a Successful Entrepreneur
Luis Alberto Sandoval