Federated offers very attractive prepay discounts on seed, and the sooner seed is locked in for 2020, the more money is saved.

Tight supply on new seed genetics for 2020 makes pre-buy an even better option.

When deciding to buy seed, the primary consideration is the discount on seed vs. interest paid on borrowed money. It’s often possible to save over 5% on seed with early purchase, and the amount of interest is negligible in comparison.

Interest rates are lower this year than at this time last year, and the Federal Funds rate has dropped by 0.5%, which means interest rates on short-term variable rate loans will also be lower.

In an up and down year – with unstable commodity pricing and unforgiving weather – these interest rates and pre-buy options are a bright spot.

Ken O’Brien, Federated’s interim grower financing agent, noted that Federated offers financing options that can help farmers take advantage of the earliest discounts. John Deere Financial offers many low and 0% interest programs for the various seed companies.

CFA also partners with Federated to provide crop input loans with no minimums – and you receive the largest discount that Federated offers. Also, for growers with a 2019 CFA loan, it’s possible to start a new 2020 loan to lock in seed early even though the 2019 loan is not paid off yet.

Talk to O’Brien or your Federated Agronomist for complete information on these programs, including important deadlines and ways to save money. Lock in your preferred seed choices by calling today.