So, what is a HYBRID Stream?
A Hybrid Stream is the perfect balance between our Capital Stream and Marketing Stream providing you with the cash you need today with access to our top tier marketing program to lower your cost of capital. Unlike delivery contracts from other companies, our Hybrid Streams pay the farmer years in advance – often before the first crop is even seeded. The Hybrid Stream offers a competitive alternative to equity and debt financing. And, in case we didn’t mention it, we also pick up the canola at your farm, saving you time and trucking costs.
A Hybrid Stream combines best-in-class marketing strategy with upfront working capital at competitive rates.
As a farmer, how do I benefit from a Hybrid Stream?
Along with all the other benefits mentioned in the Capital and Marketing Stream information sheets, the Hybrid Stream also includes:
- $450 Price Split Point: This allows great exposure to the upside for producers entering into contracts.
- Balance: Protect your down side with fixed pricing while having access to the markets.
How much canola can I sell to Input Capital on a Hybrid Stream?
Every contract is unique, however, in a standard Hybrid Stream, Input Capital will buy between 84 MT (two semi-truck loads) to the equivalent of 25 bushels per acre each year.
How are streaming prices established for a Hybrid Stream?
Hybrid Stream prices are an average of how many loads you have committed to a Capital Stream and how many loads you have committed to a Marketing Stream. Specific contract prices for the Capital Stream portion are adjusted according to the size of the upfront payment of the contract. For the Marketing Stream portion, we release our Regional Declared Price every year in mid-August. For the Hybrid Stream, upfront payments are generally between 30 and 50 percent of the value of the contract, with the balance being paid out each year over the length of the contract. We build the contracted amounts with you, the upfront payment percentage is determined by your farm’s individual needs.
What risks does Input Capital take on in this agreement?
Input Capital takes on the price risk and the basis risk for the canola contracted within a Capital Stream. You keep upside exposure through price split points. In the Marketing Stream portion of the contract, Input Capital takes the same risk as the producer, and shares in the same benefits. Our interests are completely aligned with your interests. When the canola price goes down, we make less money, and when the canola price goes up, we make more money. Our goal is to succeed because you succeed.