Historical series Itaú BBA launches unprecedented financing conditions in the Brazilian agricultural market
Payment with soybean delivery becomes an option for the purchase of agricultural equipment
Itaú BBA and Maqcampo, the John Deere dealer for the states of Goiás, Minas Gerais, Distrito Federal and Tocantins, have just launched an unprecedented way of financing agricultural machinery for Brazilian farmers.
For the first time, a producer can buy their agricultural equipment from Maqcampo, and, through the partnership with Itaú BBA, pay for it in with soybean delivery in up to five years, and fix the price of the commodity throughout that period. The price can be locked in up to 30 days before the maturity of the installment.
For José Augusto Araújo, CEO of Maqcampo, it was necessary to innovate and overcome inertia. “To do so, we challenged Itaú BBA to build a product that had cheap interest rates and still spoke the customer’s language, that is, in their currency. So we built a product that would lower the acquisition cost of the largest asset of the farm, after the farm itself, making the cost of production lower, and could still participate in the commodity price oscillation,” said the CEO.
“This initiative is absolutely in line with our strategy to strengthen existing relationships in the agribusiness production chain and, at a time of price volatility and high interest rates, mitigate farmers’ risks by bringing them an option to invest in technology in their functional currency – grain,” explained Márcio Domingues, Director of Commercial Banking at Itaú BBA.
This modality provides a great opportunity for farmers to invest in highly technological equipment, renew their fleet and achieve greater productivity with better profitability.
“Our actions and strategies will always focus on longevity and perenniality, especially those that reduce our clients’ production costs and increase their productivity. We keep working hardto help the world to produce food in a more efficient and sustainable way, concluded José Augusto.