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BA Deere
Honored Advisor

Re: John Deere Financial getting into crop inputs.

Hey K-289, yes is all comes down to volume, a guy needing 2,000 bags of seedcorn can also pay more in renting land.  Maybe he rents a farm for $400 and everyone is scratching their head, but his seed is half what others are as are similar inputs.  And perhaps $400 rent is the high, maybe some land only costs him $150 with an average no higher than anyone else.

 

I don`t know where one would go to get a sweetheart deal on seed, but it wouldn`t be the neighbor that come`s around selling the seed, it would be the person that the district man would set you up with.  Smiley Happy   For any company to get a 2,000 unit customer in new sales in a "mature" business would be big, so they would move heaven and earth to get it.

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k-289
Senior Advisor

Re: John Deere Financial getting into crop inputs.

B A  -  I keep in mind there is somewhat of a pricing cushion of 50% in this portion of ag inputs when we put in our order for 2016 even though our needs are not in the 2000 unit bracket---      

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BA Deere
Honored Advisor

Re: John Deere Financial getting into crop inputs.

Smiley Very Happy  Unfortunately for us little guys, "cutting our budget 50%" means planting fewer traited seed from less than name brand companies.  Cutting our fertilizer bill in half means using "rates of half as much".  Cutting our rent in half means "letting half of our rented acres go".    But we`ll make it, we always have. 

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k-289
Senior Advisor

Re: John Deere Financial getting into crop inputs.

Seems my neighbor having a 125 bu. yield on his organic with it's price structure is getting a bit of attention even though it's only 100 acres ---   

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k-289
Senior Advisor

Re: John Deere Financial getting into crop inputs.

My neighbor also said he thought he would pass on the J D Finc. unless they would give him 9% next October and he would let them double their  $$$ ---  

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BA Deere
Honored Advisor

Re: John Deere Financial getting into crop inputs.

I think that if a guy in short on cash flow, that it`s best to sit across from your local banker and get the money...even if you sweat bullets...even if it costs a bit more.  Because you can get it fixed interest or limited and he or she will be more apt to work with you if we really have a trainwreck a year from now.  JDF just flat out will want their money in full one year from now and if you can`t pay, they`ll soak you. 

 

I can think of alot of nasty senarios that could happen between now and a year from now, the only safe strategy being having no debt.

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Kay/NC
Honored Advisor

Re: John Deere Financial getting into crop inputs.

Another point to the discussion is that JDF bought Farm Plan.  That part of the portfolio surely includes financing of all sorts of farm inputs.  

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