Feed financing program offers deferred payments

Nov 05, 2023

ARDEN HILLS, Minn. — Rising interest rates. High input costs. Inflation. These are all fiscal challenges facing cattle, sheep and goat operations around the country.

Fortunately, livestock markets are on the upswing, providing momentum to capitalize on the situation with the right tools and timing.

"The 6-4-0 Feed Financing Program can help offset one of the most significant expenses on your livestock operation by delaying payments until it works for you," said Jay Rogers, director of dealer operations for Purina Animal Nutrition.

"The 6-4-0 Feed Financing Program allows you to defer paying for select Purina cattle, sheep or goat nutrition products for up to six months. It gives you the flexibility to pay for feed after your livestock have been marketed."

How It Works

Purina has collaborated with John Deere Financial to offer this unique feed financing tool. The 6-4-0 Feed Financing Program has been available regionally and is now offered nationally through participating Purina dealers.

Rogers

"Registration in the program is done through participating Purina dealers, and the enrollment periods last six months," Rogers said. "During the six-month enrollment period, Purina pays the interest charge."

"The six-month enrollment timing aims to match when you provide supplemental nutrition to cattle, sheep or goats and then target to market them at the end of the enrollment period before interest begins to accrue," he said.

Here are some examples of how this could work:

Cattle: You have a spring-calving cow herd, and feed financing enrollment starts on July 1. You plan to creep feed during the summer and then wean calves in the fall feeding Purina starters and mineral. The enrollment period would end on Dec. 31. Ideally, calves would be marketed before this date, and the feed bill would be paid with their sale proceeds.

Sheep or goats: You have a flock of sheep or a herd of goats and feed financing enrollment starts on June 1. You’ve weaned the lambs or kids. You plan to graze throughout the summer, supplying Purina mineral and feed tubs in the pasture with the aim to breed ewes or does towards the end of the summer. The enrollment period would end on Nov. 30. Ideally, lambs or kids would be marketed before this date, and the feed bill would be paid with their sale proceeds.

Select Purina cattle, sheep and goat supplements and minerals are eligible for the 6-4-0 Feed Financing Program.

Feed mixed with Purina cattle, sheep and goat supplements are also qualified to participate. Contact a Purina dealer for complete details on eligible products.

Advantages To Financing

Financing your feed in this manner gives you many advantages to help reach your operation goals, including:

• Financial certainty knowing your rate is locked in and won't fluctuate.

• Purina covers your interest charge for up to six months during the enrollment period, which wouldn't be the case with an operating line of credit and only comes when you pay cash.

• Maximizing your cash flow by keeping your operating line and cash available for unforeseen expenses.

• Offering an additional resource to help establish and maintain a successful operation.

Go to purinamills.com/6-4-0 or contact a local Purina dealer for more details on the 6-4-0 Feed Financing Program.