by Jordan Howe
As harvest approaches, many growers are focused on how they’ll finish the current season strong, landing with the high-end of yield projections and controlling costs to maximize return on investment. But August also is an ideal time to start thinking about next year and your operation’s input needs.
Input financing programs may not be top of mind right now, but the most successful growers know that there are cost savings to be had if you plan ahead and start developing your capital management strategy for 2027 well before planting season arrives.
Evaluating financing options early allows you to look beyond interest rates and consider other important details that can impact your total expenses, including cash-flow implications, repayment timing and how specific financing terms align with your crop cycle.
Shop early for next season
Putting the puzzle pieces of your financial plan together now helps ensure you’ll be in a strong position to take advantage of the seasonal incentives many retailers offer. August is typically when those programs start to open, with early-season pricing and promotional financing available to those who can pencil out the details of their plan now.
If you’re in a position to act early, consider looking back at the current year — or, even better, if the information is in your records, review the last five-year cycle of financial and crop data.
Spending a little time before harvest kicks in to full gear can help you take stock: Where did your operation leave money on the table, and what changes would you have made in hindsight? Your crop consultant can help you explore options and assess whether those early commitment programs coming out for next season could help you optimize your budget and reduce cost per acre.
Evaluating financing programs
When you shop for next year’s input needs, it’s important to take a strategic approach in how you deploy your capital, including any use of retail financing. As part of your planning, pay attention to the terms, rates and incentives of each financing offer, which will vary.
The task of identifying which offer is best for your operation is nuanced because every operation has different financial circumstances that impact how well a financing offer can deliver on your needs. Many people focus on interest rates, but timing and alignment with your cash-flow realities can have just as much of an impact on total borrowing costs.
Take seed for next season: Planning ahead and considering the timing of both commitment and repayment can shape the total cost more than the headline rate might suggest.
Let’s assume you have a $100,000 seed plan with payment due after harvest in November 2027.
Option A allows you to wait and commit later, in January 2027. It offers a 0% annual percentage rate for four months, followed by an 18% rate through the November due date. Here are the details:
- 0% for four months (January to April)
- 18% for the next seven months (May to November)
- Total interest: $10,500
Option B requires an earlier commitment — say, September 2026 — but with that you get a consistent 3% APR through the same November 2027 due date. The details are:
- 3% for 14 months (September 2026 to November 2027)
- Total interest: $3,500
Even though Option A starts at 0%, the higher trailing rate over a longer period of the cycle results in a substantially higher overall cost.
As you consider your input needs for next year, now is the time to look beyond the headlines and make sure you understand the full cost of any financing offer you’re considering. When margins are tight, the decisions you make around how and when you pay for the products your crop needs can make a meaningful difference to your bottom line.
It’s good practice to check in with your financing partners, your crop consultants and anyone else who can help you look at the big picture to start laying a foundation for success in 2027.
Howe is an area manager with Nutrien Financial and oversees operations across the Corn Belt, western U.S. and Canada. He provides leadership and innovative solutions to help growers increase their buying power and maximize every opportunity for success. Learn more at nutrienfinancial.com.