The marketing director for U.S. crop protection with BASF says farmers planning for 2026 should be aware of their financing choices.
Brady Spangenberg says that the ag lending market is competitive, and farmers can use that to their advantage.
“If you’re spending money out of an operating note that’s at 7-8%, that’s at least a dollar an acre you’re spending just on interest.” He says, “That’s where low or 0% financing offers really put money back into helping grow the crop rather than paying for the money to help grow the crop.”
However, he tells Brownfield that producers need to thoroughly examine the fine print.
“They might have asterisks around when the lower or 0% comes off and the prime plus interest kicks in.” He says, “Be very wary of programs that aren’t dated post-harvest, because I think that can sneakily add those interest percentages back into the balance sheet.”
Spangenberg says the best financing offers are typically no-frills and straightforward, and he encourages producers to consult with a trusted lending professional.
As an example, he says BASF is expanding its 0% Grower Financing Program to cover the company’s entire crop protection and seed portfolio.
“We saw record participation in our financing offer this past year.” He says, “Our goal is to continue that because we think that was one of the most impactful ways to support the planning conversation at a time when everybody’s really got a very sharp pencil out there.”
