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NC Kansas | I would say it's just mostly sale's talk. Companies do vary some of the programs from 0% interest to prime -1% etc... but it all comes down to actual seed cost. Disclaimer... I sell for Channel and we do have a 0% option and a Prime -1% option and there is a difference in discount... and guess what if you take the prime -1% option, the upfront discount is about 6% cheaper...and guess what that seed costs you over the course of 12 months financed right now at prime -1?? about 6%. So, it's all sales talk, just negotiate the seed you like from the dealer you trust and use the financing tools if you need them. The cheapest per bag price you can usually get on paper is writing a check in November... but if that expense ends up on your operating loan pretty quickly then by harvest it will be near the same as if you had done the 0% financing option on actual cost of your seed.
Usually there are 2 camps... guys with ample cash that want the tax write off and they are just in the habit of getting the seed ordered and paid for in the fall.
Other guys don't have the cash so they are borrowing at some point along the way and just need to know the interest terms to do what's most cost effective. | |
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Seed Financing
