Posted September 22, 2022 | By: Justin Little, Nutrien Financial Territory Sales Manager

Bridge financing is an easy solution to secure your seed for next year now, before your income from this year’s harvest arrives. It’s an option that Nutrien Financial offers to help growers conserve cash, while still taking advantage of the best interest rates and discounts. In a volatile market with severe pricing fluctuations, our bridge feature provides a lot of benefits to growers and eliminates some of the backend headaches, so farmers can get back to the field. 

Beat the Cyclical Cash Conundrum

Income from farming is cyclical, based specifically on every crop you plant. At Nutrien Financial, we are solely dedicated to the ag space, so we know the juggling that occurs between purchasing and profit realization. Having the ability to match your payments to the timing of your crop income is crucial. In the case of bridge financing, we can secure your seed purchases before you have the cash on-hand from your harvest AND without doubling up your credit lines. This takes the messy part of lining up payments and income off your plate so you can focus on farming. 

Lock in Fixed Rates

Many growers secure next year’s seed by using credit cards or bank lines of credit. But did you know that most of those payment mechanisms are bound to a variable interest rate structure? This means their APR is tied to an underlying index like prime rate. As you have likely noticed, the ongoing surge in prime has caused a similar trajectory to rates on your credit cards and lines of credit. This could all but eradicate any yield economics you hoped to achieve. With Nutrien Financial, you can place your order now by leveraging a bridge financing option to lock in a low interest rate that won’t change. Securing this fixed rate can help improve budgeting and forecasting as you develop your 2023 farm plan. 

Combat Unpredictability of Next Year's Crop

Financing your seed can improve your cash flow and can free up working capital to give you a safety net in unpredictable times. We know every crop year is different. Our bridge feature can help you attain your seed commitments now and have them lined up and ready to go when you need them. Bridge financing is a way for you to “bridge the gap” from one year’s crop to the next without applying for additional debt. 

Conserve Capital for Other Needs

Financing allows you to conserve your cash for other things - like expanding your operation, saving for emergencies or maximizing profitability by using your cash on other crop inputs where discounts aren’t as readily available. If you finance your seed now, you can protect your cash and leverage it for needs that might arise later. Bridge financing is designed with maximum flexibility so you can strategically plan for next year in the critical “gap period” of harvesting this year’s crop.

How to Start with Bridge Financing

If you’re already a Nutrien customer, talk to your crop consultant or a Nutrien Financial representative. If you already have credit with us, there is NO additional paperwork. Simply notify your crop consultant when you are ready. If you haven’t tried Nutrien Financial, there’s a secure and easy online application at www.nutrienfinancial.com. 

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Posted September 20, 2021

Brent Smith of Nutrien Ag Solutions sits down to discuss his passion for FFA