Profitable Financing Starts with the Pitch: How to Market Your Credit Program for Stronger Margins
As ag retailers wrap up the 2025 season, the path to stronger margins in 2026 starts with how your finance program is positioned and promoted. In today’s market, profitability isn’t just about product pricing. It’s also about offering flexible, well-communicated financing options that drive early commitments, build loyalty, and keep your agribusiness top of mind.
This concise guide shares proven strategies for marketing your credit program more effectively, converting financing into a competitive advantage that supports sales, strengthens relationships, and protects margin across the entire season.
Between a crop and a hard place
Retailers face a tough margin environment driven by lower farm income, high input costs, and macroeconomic uncertainty. The USDA reports net cash farm income down 3.5% and net farm income down 6.3% in 2024, with corn and soybean receipts especially weak. That translates into tighter farmer budgets and heightened price sensitivity.
While fertilizer and fuel prices have eased since 2022–23 peaks, they remain above pre-2019 levels. At the same time, interest, labor, and land costs continue to climb. Global instability and elevated interest rates further strain dealer operations, especially for those carrying inventory or offering terms. The result: reduced demand, slower turns, and more pressure on per-unit profitability.
USDA projects a farm income rebound…then what?
The USDA expects a strong recovery in 2025, with net farm income projected to rise nearly 30% to $180.1B. Retailers should seize this window to strengthen their position:
•Encourage early prepay or forward contracts for 2026 inputs.
•Lock in supplier pricing and payment terms now, while markets stabilize.
•Shore up working capital and plan conservatively for beyond 2026.
Credit where credit is due
Private label financing allows dealers to offer flexible payment options while accelerating revenue. Well-structured programs enable promotional financing while protecting margin through built-in finance terms. And just as important — because financing is offered under your brand, the customer relationship stays with you and not a third-party lender.
Financing becomes a tool to support the sale, not a barrier. When growers know they can secure inputs and pay post-harvest, they’re more likely to commit early, boosting sales volume and loyalty.
Ag retail finance: defense, offense, and growth
Staying competitive in 2026 means leading with a smarter financial game plan. As margins tighten and markets shift, these six (6) priorities will help ag retailers stay prepared, profitable, and one step ahead:
- Secure capital: don’t wait for credit to get tighter. Secure lines of credit now with an input finance partner who specializes in your business so you’re ready to move when opportunities or challenges arise.
- Monitor credit risk: use your internal tools and financial dashboards to stay on top of carryover debt and payment trends. Adjust terms early to protect your business without disrupting grower relationships.
- Control costs: push for early-order discounts. Use bundling and strategic offers to preserve margin while keeping your value strong.
- Offer payment flexibility: seasonal payment plans, crop-share options, and multi-product financing can help you close sales and maintain grower loyalty without sacrificing cash flow.
- Use inventory wisely: base purchase decisions on real-time crop data and local forecasts. Avoid the risk and cost of holding excess inventory.
- Elevate your playbook: empower your team to talk confidently about credit options. Make financing a core part of the sales conversation, not a backup plan.
Ag retail isn’t immune to volatility, but the dealers who invest in better financial infrastructure, stronger grower connections, and flexible credit tools will be positioned to win. With the right financing strategies, you can stay resilient and responsive no matter what 2026 brings.
Was this article helpful?