Guys,
This thought has been running through my mind for several weeks and maybe you can help if you are a dealer.
I have been reading about everything on the board for some weeks now and I have been expanding my own operation as much as I can. I have noticed that several growers have expanded even larger than I could imagine because they have been at it longer and they have more land available. I have watched as the season is moving along and sales are underway. I suppose that the largest sale that I have noticed on this board has been something in the neighborhood of 25 lbs. Most sales seem to be directly between the grower and the buyer and there is probably a cash payoff. Deal done! My question is: When some of these growers get several acres in good production and large amounts to the tune of 400-500 pounds are ready to sale, How is this type of transaction done? I CAN'T IMAGINE A BUYER HAVING SEVERAL HUNDERED THOUSAND DOLLARS ON HAND AT HIS HOME! I ALSO CAN'T IMAGINE A GROWER TAKING A CHECK OR LEAVING HIS CROP WITH A BUYER HE DOESN'T REALLY KNOW VERY WELL AND MAY LIVE AS MUCH AS 100 MILES AWAY FROM. What really takes place in a situation like this?
Hugh
First of all, checks still work. Cashier's checks work better, however. Most of the time, this size transaction is done via wire, or a combination of wire and certified check depending on the circumstances.