What about the risk of supplier "going under" w/your/our prepays?

Who in the world would think about storing grain @ a facility without a warehouse receipt? Yet we all trust our nutrient & pesticide suppliers to give us nothing but a "pd" receipt. A total loss of your fertilizer $$ would offset quite a few yrs savings of "prepays".

This volatility thing is working on everyone. I'm sure Cargill has smarter people than us & they've pulled out for a while I'd say.

So-does one just write a check to the supplier & hope for the best? We've had 2 very large elevator-fertilizer dealers go upside down here in recent years. Even if someone else buys the business you usually realize the cash is gone from the prepay stuff...and it probably didn't go to the wholesaler either. Just another consideration...but one having many more digits in front of the decimal than in years past for most farmers.