Why Early Planning Pays Off: Cost Scenarios for a 1,000-Acre Grower
When it comes to input costs for the next growing season, every decision matters. At Ag Plus, we offer financing programs and early purchase discounts that significantly lower costs for growers who plan ahead. Let’s walk through two scenarios for a 1,000-acre Ag Plus grower purchasing seed, fertilizer, and chemicals.
*The numbers in this example are industry averages utilized to show differences in early financing and prepay savings.
Scenario 1: The Planner – Maximizing Discounts and Financing
This grower locks in their seed order by November 30, 2024, taking advantage of 0% fixed interest through May 31, 2025, followed by a 5.99% fixed interest rate until March 15, 2026. They purchase at least 80% of their seed through Ag Plus and prepay for fertilizer and chemicals, earning a percent discount. They also finance their fertilizer and chemicals through Ag Plus at a 4.25% fixed interest rate until March 15, 2026.
Corn Seed: $125/acre x 500 acres = $62,500
Soybean Seed: $47/acre x 500 acres = $23,500
Financing Costs
*If paid in full by May 31st, no additional interest expense would be incurred.
Corn Fertilizer: $165/acre x 500 acres = $82,500
Soybean Fertilizer: $59/acre x 500 acres = $29,500
Financing Costs
Corn Chemical: $40/acre x 500 acres = $20,000
Soybean Chemical: $60/acre x 500 acres = $30,000
Financing Costs
Scenario 1 Summary
Scenario 1 Input Costs: $244,279.36
Scenario 2: The Procrastinator – Missing Discounts and the 0% Deadline
This grower purchases 80% of their seed through Ag Plus, qualifying for the fertilizer and chemical 4.25% fixed interest rate, but they miss the November 30, 2024 deadline for 0% seed financing. They also choose not to prepay for fertilizer and chemicals, losing out on the early prepay discount, which increases their total input costs significantly.
Corn Seed: $125/acre x 500 acres = $62,500
Soybean Seed: $47/acre x 500 acres = $23,500
Financing Costs
Corn Fertilizer: $165/acre x 500 acres = $82,500
Soybean Fertilizer: $59/acre x 500 acres = $29,500
Financing Costs
Corn Chemical: $40/acre x 500 acres = $20,000
Soybean Chemical: $60/acre x 500 acres = $30,000
Financing Costs
Scenario 2 Summary
Scenario 2 Input Costs: $271,083.13
In this scenario, the grower pays $26,803.77 more compared to the Planner because they miss out on the 0% financing for seed, the prepay discounts, and instead finance at higher rates for seed, fertilizer, and chemicals. This clearly illustrates how delaying decisions can impact costs significantly.
Local Card
17¢ Fuel Discount (For a limited time)
Potential Patronage Dividends
Charge Purchases to Local Ag Plus Account
Rewards Card
3¢ Fuel Discount (Ongoing Reward)
Daily In-Store Rewards
1 Point for Every $1 Spent In Store
Get-One-Free Rewards Clubs
Rewards Card
3¢ Fuel Discount (Ongoing Reward)
Daily In-Store Rewards
1 Point for Every $1 Spent In Store
Get-One-Free Rewards Clubs
By planning ahead, securing inputs early, and taking full advantage of Ag Plus's financing programs, the Planner saves big money compared to growers who miss deadlines.
Investing time now to plan and partner with Ag Plus pays off—not just in savings but in peace of mind for the growing season ahead. Contact your Ag Plus agronomist today to learn more and lock in your savings.
ABOUT
Corporate Office
1100 East Main Street
Marshall, MN 56258
(507) 532-9686
subscribe for Ag Plus updates
© Copyright Ag Plus Cooperative | Privacy Policy