Good Options for 2023 Crop Financing

Dec 12, 2022

Time to make financing decisions for 2023 crop inputs
Financing options available to growers this year are the same as last year, through Cooperative Financing Association (CFA), Rabo AgriFinance, and John Deere Financing (JDF), but with new program details. Kelley Meyer, Federated’s business service specialist, outlined the 2023 financing plans.
Meyer highlighted the benefits of the CFA Program and it’s singular and simple loan application. She noted that their variable interest rates are competitive, and CFA is a “one-stop source for all financing needs.” Additionally, CFA provides:
  • the option to lock in input costs to maximize income and reduce risk;
  • improved security of product supply;
  • early payment options without penalty;
  • a non-revolving line of credit with limits based off grower’s collateral; designed to fit individual grower needs.
CFS loans include a few changes for 2023.
  • A new loan commitment level of $600,000, up from last year’s $350,000.
  • Interest rates at 10%, up from last year’s 6.25% due to Federal Reserve interest rage hikes. Meyer said, “The CFA Input Advantage Base Rate has increased as well because of the variable interest rate on their loan.”
  • Overall, the CFA program for 2023 is similar to last year’s:
    • Early applications must be completed by 12/31/23 with variable interest rates at 5.25% through 8/31/23; after that the interest rate will change to 7.25% with a due date of 3/15/24 for all agronomy purchases.
    • Mid-Season applications completed by 2/28/23 will have a variable interest rate of 7.25% and will be due 3/15/24 for all agronomy purchases.
    • In-Season applications completed after 3/1/23 will have a variable interest rate of 9.25% and will be due 3/15/24 for all agronomy purchases.
    • The interest rate for all other co-op purchases will be at 9.25% until 3/15/24. This includes propane, fuel and any other purchases made at Federated Co-ops.
Federated also offers Rabo AgriFinance loans with these specifics:
  • 0% financing for all NK seed purchases, with a minimum purchase of $3500. The deadline is through 8/31/23, and a due date (paid in full) of 12/15/24.
A third option from John Deere Financing (JDF) is financing at Prime +7.25% APR, with a due date of 12/23.

Contact your Federated Agronomist or Meyer with financing questions before year end.

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