Corteva launches Barter Program for agricultural input negotiations

Date:06-26-2024

Corteva Agriscience has launched its Barter Program to pay for pesticides, biologicals, and seeds using grains (soybeans and corn) already stored by producers or to be harvested in the 2024/25 season. 

For this new operation, Corteva is offering US$600 million in products for purchase via barter for the next season.

According to Filipi Belloni, Barter Manager for Corteva Agriscience in Brazil and Paraguay, this payment method is highly advantageous as it allows farmers to acquire inputs without an initial monetary investment. 

″This type of operation facilitates farmers' access to agricultural technologies without necessarily having to use their investments or take out loans,″ he said. 

″Barter also serves a dual purpose by being not only a tool for supporting commercialization but mitigating risk for the involved parties,″ Belloni emphasized.

Corteva stated that with this program, farmers are ″ensured a more competitive remuneration for their grain″ and have ″security in negotiations.″ This is because, as explained by the multinational, in the commodities market, ″uncertainties are constant, especially considering the fundamentals and variables that can influence prices.″

Additionally, farmers can participate in a potential price increase of the commodity within the Program with Options (financial derivatives). ″Through barter, farmers can negotiate production with more peace of mind and manage the risks of commodity price fluctuations more effectively. It is a way to prevent potential setbacks and ensure the essential supplies for the success of the rural property,″ Belloni stated.

″With the Barter Program, farmers have another option to access Corteva's innovations in seeds, crop protection, and biologicals—from seed to harvest—helping them meet daily farming challenges and increasing productivity and profitability,″ Belloni said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)