John Deere now financing US Farmers for Seed, Chem and Fert
- By: "Farm Tender" News
- Cropping & Grain News
- Jul 18, 2017
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John Deere (Deere & Co) has been building farm plant for more than two centuries now.
The worlds largest manufacturer of Tractors and Headers has been lending Farmer's money to pay for equipment for a long time now. But as Corn, Wheat and to a lesser extent Soybeans prices have struggled in the last couple of years Deere & Co has turned its focus on financing other things Farmers spend their money on.
As US Famers find it increasingly hard to secure bank finance, good old John Deere is stepping up to the plate lending money for crop supplies like seed, chemical and fertiliser. So much so that they have now become the number five Ag lender behind more famous banking names like Wells Fargo, Rabobank, Bank of the West and Bank of America.
By Deere & Co lending what is has, has kept alot of Farmers in farming in these troubled times. For Deere & Co it has provided a much-needed income source whilst going through its toughest trading period in the last 15 years.
Farmers income in the US will decline for the 4th year in a row.
Short-term credit accounts for farmers—used for items such as crop supplies and equipment parts—are up 38% since the end of 2015
Agronomists say that a Farm of 1000 acres growing Corn, Soybeans and Wheat would need around $250,000 to cover the cost of seed, fertiliser, chemical and fuel for a single season
Monsanto, DuPont and Dow Chemical are also getting into the short term financing of crop supplies
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