Farmtech and Bayer launch CropCredit Program for agri-input purchases

Partnering with Farmtech, Bayer launched the CropCredit Program at the Andav 2024 Congress, enabling retailers and customers to purchase agricultural inputs directly through a special financing program. 

According to the companies, one of the major innovations is that customers can have pre-approved credit limits without needing to provide collateral for credit purchases.

The goal is to "boost input sales in a secure, predictable, and 100% digital way," said Bayer and Farmtech. In practice, Bayer, through its retailers, requested Farmtech to pre-approve credit limits for its partners. With the limit approved, Bayer's relationship teams and their distributors have a unique tool to negotiate product sales with credit already arranged for their clients. Bayer then processes purchase orders under the CropCredit model, delivering the inputs to the preferred address. All transaction processing, from credit approvals and formalization to payment facilitation, occurs via Farmtech’s platform for the customer, distributor, and Bayer team.

Marcos Arruda, Finance Director of Bayer's Agricultural Division in Brazil, explained that the company had been heavily investing in long-term relationships with the entire production chain, putting the customer at the center of the strategy by offering more financial solutions.

"We work to meet the needs of our partners, which includes enabling faster and simplified credit access options with advantageous conditions for our customers. In this sense, the partnership with Farmtech expands access to credit lines for producers and distributors, aiding in purchase management and planning," he said.

So far, over 2,000 Bayer customers have had their credits pre-approved within the program, amounting to a credit potential of more than BRL2.5 billion.

"Thanks to sustainable relationships with retailers and customers, through the partnership with Farmtech, faster credit approval with attractive interest rates will be possible when the customer needs it," Marcos emphasized.

Bayer had already tested CropCredit, and following positive results from the pilot at the end of 2023, it is now being offered nationwide. 

Left - Rafael Pilla, CEO da Farmtech, Right - Marcos Arruda, Bayer Brasil

"The performance was very satisfactory in the region and helped streamline credit approval, making the process faster. The program was extended to some farmers and Bayer's partner distributor network. Now we will make it available to all distribution channels, whether distributors or small and medium-sized producers across Brazil,"  Rafael Pilla, CEO of Farmtech, celebrated.

Pilla further explained that through the program, retailers can have a macro view of pre-approved limits for the entire crop cycle of their customer base, allowing for better sales planning. 

"And something we always emphasize is that we are 100% digital. We managed to create a program for Bayer with a digital journey customized to the needs of the company's different sales channels, making it possible to provide credit without affecting the customer’s bank limit, without IOF incidence, and without the need for collateral from the rural producer," the executive said.

Farmtech aimed to increase sales potential without increasing exposure to risks. Another feature of CropCredit is that it does not interfere with the relationship or commercial process with the retailer or industry customers.

"We are the catalyst force for our partners, so we do not interfere in their relationship with the final customers. The relationship is theirs; we are a sales acceleration tool for the chain. Another point is that we do not require real collateral and have a very simple process with the producer, allowing our partners to manage operations and requests in real-time, providing security and sales predictability for their business," Rafael Pilla said in conclusion.

Farmtech, created in 2017, is a pioneering agtech in Brazil’s rural digital credit modality and is currently a leader in the movement to digitalize credit from the input industry to rural producers.

(Editing by Leonardo Gottems, reporter for AgroPages)

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