Saskatchewan crop financing/trading firm more than doubles in size

Regina-based agricultural commodity streaming company Input Capital Corp. has reported a successful second year of operation, with adjusted net income of slightly less than $195,000 on total revenue of $19.3 million.

Input enters into streaming contracts with canola producers, buying a portion of their canola production at a fixed price for the duration of the contract. It pays 80 percent of the value of the contract up front.

“During the 2015 fiscal year we invested $49.1 million into streaming contracts, nearly doubling our capital deployment over the previous year,” said chief executive officer Doug Emsley during a conference call with analysts.

“We also more than quadrupled our plant base from 15 to 68 as we broadened our outreach to farmers. This means our average deal size has come down, which makes us even stronger through better diversification.”

Last year Input sold 23,923 tonnes of canola, up from 6,500 tonnes in fiscal 2014.

Revenue from those sales grew to $11 million from $3.1 million.

Emsley said the tonnage makes Input the largest canola producer on the Prairies and he anticipates volume will double again next year.

Chief financial officer Brad Farquhar said of the 53 new canola streams added last year, three were in Manitoba, representing the company’s entry to that province. Five were added in Alberta and 45 more signed on in Saskatchewan.

As well, the company made additional investments in 12 existing contracts.

Input also reported that canola trading sales increased to $8.3 million for the year, compared to $2 million in 2014.

Farquhar told analysts that a year ago Input thought canola-trading revenue would be nothing more than “periodic opportunism.”

“Our view on that has changed,” he said. “We’re beginning to see how canola trading volume is important strategically to our business.”

He said trades allow Input to be flexible in its marketing and logistics, introduces it to potential customers and helps existing clients market through Input for better prices.

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