Ag Plus Financing vs. Standard 7.5% Bank Line of Credit
When it comes to managing input costs, how you finance matters just as much as what you buy. At Ag Plus, our CFA financing programs are designed to give growers lower interest rates, flexible terms, and savings that stack up quickly. Let’s compare what happens when a 1,000-acre grower uses Ag Plus financing versus a standard bank line of credit at 7.5%.
*The prepay numbers in this example are industry averages utilized to show differences in early prepay savings.
Scenario 1: Financing with Ag Plus (CFA Program)
This grower locks in early with Ag Plus, purchasing seed by November 30, 2025 and fertilizer/chemicals by December 31, 2025.
Corn Seed: $125/acre x 500 acres = $62,500
Soybean Seed: $47/acre x 500 acres = $23,500
Financing Costs
*Grower can pay in full at any point during the loan timeline and 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
Ag Plus CFA Financing & Early Prepay Input Costs: $237,454.53
Scenario 2: Financing with a Bank at 7.5%
This grower misses the prepay deadlines and finances seed, fertilizer, and chemicals with a bank line of credit starting January 1, 2026 at 7.5%. No prepay discounts apply.
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
Bank LOC Input & Financing Costs: $267,375.00
In this scenario, the grower pays $20,615.63 more compared to using the Ag Plus CFA program. By missing out on the financing rates for seed & fert/chem, the prepay discounts, and instead financing at a higher 7.5% bank rate, the overall cost of seed, fertilizer, and chemicals rises significantly. This clearly illustrates how delaying purchasing decisions can directly reduce profitability.
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1 Point for Every $1 Spent In Store
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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.
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