Funding your sustainable farming transition

Farmers are looking for ways to become more sustainable in their practices, and easily generate the evidence they need to prove their sustainable credentials. Often this requires acquiring new equipment and technology. However, for many, these investments can be difficult to make in an uncertain financial climate. In this blog we highlight some of the easier ways farmers can source the funds to support their sustainability investments. 

The need for more sustainable farming equipment

With CAP 27, the European Green Deal, and increasing pressure from investors and sustainable food supply chains, farmers are looking for ways to adopt more sustainable practices to stay competitive and profitable. Research from McKinsey and Company also shows that consumers are looking for more sustainable food choices, with 28% of consumers surveyed indicating they have increased their consumption of sustainably produced food since the start of the COVID 19 pandemic. These pressures create a strong need for farmers to not only adopt more sustainable practices, but to ensure they have the equipment and technology to report their sustainability.

The solution to more sustainable and more profitable farming

Being as sustainable as possible is no use unless farmers can also be profitable and keep their businesses thriving and operating sustainably – After all, there can be “no green if red”.

Machines like Valtra’s Q Series can help farmers save fuel and inputs with its market-leading efficient drive train and built-in smart farming technology. Upgrading to more sophisticated technology like Valtra’s TaskDoc Pro makes reporting on inputs used simple and easy, while Valtra Connect can give insights into how to save fuel. Read our blog How Smart Farming can help you achieve sustainability goals for more ways to improve your sustainability.

Barriers to farmers wanting to adopt sustainable practices

Making investments in more sustainable farming equipment can seem difficult for farmers. Uncertain income from fluctuating produce prices, increased costs of fertilizer and fuel, seasonal changes in cash-flow, the unpredictability of the weather, and high interest rates can all be barriers to farmers wanting to invest. In the past, traditional banks do not understand these difficulties. Luckily, these days there is a solution.

Farmer focused finance to support the transition to more sustainable practices

For farmers looking to purchase new equipment to support their sustainable transition, AGCO Finance can assist in providing more affordable financing that is tailored to the individual needs of the farmer. AGCO Finance is AGCO’s financing arm and is a partnership with DLL / Rabobank (a global frontrunner in sustainable finance). Their Climate Journey Fund is a €100 million annual global fund designed to support the climate journey of customers with recognized sustainability certifications. In addition, through AGCO Finance’s partner ecosystem, they have access to special funding programs aimed at improving sustainability. This enables AGCO Finance to support farmers wanting to make the sustainable transition with discounts on interest rates. There are different sustainability criteria and varying discounts available from market to market, however generally, this can save the farmer thousands in interest costs on the purchase of a new Valtra when financed through AGCO Finance, for example. As an AGCO brand, AGCO Finance understands the needs of farmers. Financing can be individually tailored to specific farm issues, such as seasonal fluctuations in cash flow. To find out more about AGCO Finance’s Climate Journey, visit their website. To find out how you can benefit from tailored financing that meets your individual needs, speak to your local Valtra dealer.