Repurchase Program

FCStone Financial offers the Repurchase Program for grain hedgers to help finance physical grain inventories. The Sale/Repurchase Program is approved for use in the States of Iowa, Illinois, Indiana, Kansas, Oklahoma, Texas, Nebraska, Colorado, Ohio, Minnesota, Wisconsin and South Dakota.  Three years of audited financial information is required for the participating company to become qualified and receive their tiered rating. Participating companies are rated according to their financial condition in one of four pricing tiers. 

Qualifying elevators will receive up to 90% of the sale value of their company owned inventory. This allows all basis gains (or losses) to be controlled by the participating company. This tool helps elevators expand their credit capacity in order to capture those basis gains, especially at a time when normal credit lines may be tight. Warehouse receipts are used as collateral with hedges held in a segregated account. Rates vary according to the financial strength of the individual elevator, and are based off the prime rate each month.