Pre-Buy Purchases Benefit This Year – or Next

Dec 13, 2023


pre-buy for 2024 new crop inputs
It’s the season of giving, but no one wants to give too much to Uncle Sam, so if you find yourself wrangling with tax implications, talk to your Federated Agronomist about pre-buying your seed and/or fertilizer now.
 
However, “pre-buy” isn’t always about making purchases by yearend. Whether you need to balance your tax burden between calendar years with pre-buy, or just help yourself (and Federated) by avoiding the spring rush, you have options, according to Rod Gustafson, location manager at Federated’s Albertville location.
 
With pre-buying, you could save money. Fertilizer prices bounce around, and you may beat a price increase with pre-buy. Seed prices go up with every month closer to spring. Gustafson recommended taking advantage of discounts on seed now. “Some of [the discounts] go away,” he said.
 
With pre-buying, you lock in supply. Supplies get tighter for both seed and fertilizer as spring approaches. The supply of the most popular hybrids and varieties is always limited, so order early if there’s one you really want. The highest performing seed products are in high demand. “Seed sells out early,” said Gustafson.
 
Federated secures fertilizer based on early orders and pays the premium to keep those products stored at the river terminals. Barge movement on the river is unpredictable in the spring. Fertilizer that’s already in the terminal is certain to make it to your farm when you need it.
 
Gustafson noted that “Federated has never actually run out of [fertilizer],” and that is partially related to a good percentage of Federated’s growers pre-buying for spring in the late fall and winter.
 
With pre-buying, you minimize the worry and stress that spring brings. Give your Federated Agronomist a call soon to discuss your pre-buy options. And read on to learn more about financing options for pre-buys.
 

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