How Input Financing Can Deliver Potential Savings and Flexibility to Your Farm
When it comes time to buy inputs for the following crop year, you need to decide how you’re going to pay for your seed and crop protection products.
Do you pay for everything in cash? Finance your purchase now and pay in full after next year’s harvest? Hold off till closer to planting/seeding season hoping you’ll have more flexibility once you’ve marketed a greater share of your grain?
There’s a lot that goes into the decision-making process, but developing a strategy and finding the right payment option for your farm operation can make a big difference.
When does it make sense to finance your input purchases?
There are very real benefits to financing your seed and crop protection input purchases, particularly in the initial weeks and months following harvest.
For one, many seed and chemical companies offer incentives for buying inputs early. So even if you don’t have the capital to pay in cash now, the total discount you can potentially get for purchasing in the fall might outweigh the interest you’ll end up paying post-harvest.
Financing your input purchases in the fall can also free up important cash flow for other needs you might face on your operation throughout the year.
Paying in cash when you’re able feels good, no doubt about it. But having capital in hand can be vitally important if and when you need to spend money on a custom application, equipment maintenance or other in-season demands you run into for your operation.
You do have to weigh the overall cost of financing your purchase, though.
Let’s say you book a $40,000 seed and chemical order on November 15 of this year and finance the purchase with a 5% interest rate. If you’re not able to pay in full until the end of the following year, you’d end up owing a little over $2,250 in interest when all is said and done.
* Amount owed assuming purchase is paid in full on 12/31/21 with a 5% total interest rate.
See what 0% financing on inputs can do for your farm
At Farmers Business Network®, we want to make sure you can take advantage of pre-season savings and still have that financial flexibility throughout the crop year.
Our special 0% input financing offer can make a huge impact on your farm’s bottom line. Once you’ve been approved for 0% input financing, you’ll be ready to buy the inputs you need from FBN Direct® for the upcoming season and not have to worry about payments until the end of the 2021 crop year.
"Having 0% financing is huge on my farm. Bottom line? More money in my pocket, because it seems like our margins are getting tighter year after year."*
- David Z., Alberta
And it gets even better: Reach our 0% Club threshold (total spend of $35,000 in the U.S., $50,000 in Canada) prior to March 31, 2021, and you’ll enjoy 0% financing on inputs through FBN Direct all season long.
That means you won’t have to pay interest on chemicals to control unforeseen weed escapes post-emergence or that last-minute fungicide purchase until after harvest. And that gives you even more flexibility to manage your operation throughout the growing season.
Apply for 0% input financing through FBN
Get ready to purchase inputs for the upcoming crop year today. Apply for 0% financing with FBN and enjoy the flexibility and savings potential this can deliver to your operation.