Fendt offers dollar-denominated credit for the purchase of machinery

In a scenario of tight margins and volatile commodity prices, Fendt, a German manufacturer of high-tech agricultural machinery and innovations, is highlighting its foreign currency (dollar and euro) credit lines. The initiative aims to offer farmers attractive alternatives that transform the acquisition of high-tech agricultural equipment into a more profitable and strategic investment.

For the 2025/2026 cycle, the great challenge for the agricultural sector is not only to produce more, but to better manage capital costs. Given the rising cost of credit lines in reais, credit in dollars presents a more attractive financial cost and allows for a so-called "natural hedge," where producers who receive payment for their harvest in foreign currency settle their installments in the same monetary base, eliminating the risk of cash flow mismatch.

According to Julio Hercules, commercial manager of AGCO Finance, the factory's bank, among the main attractions of the foreign currency credit line are the more competitive interest rates and extended terms, which help mitigate the impacts of exchange rate fluctuations throughout the financing period.

When aligned with the flow of revenue in foreign currency, this modality helps preserve purchasing power and the balance of the contract. “Since the producer sells their harvest based on the dollar price, they have natural protection against exchange rate fluctuations. If the dollar rises, the debt on the machinery becomes more expensive, but their harvest also becomes more valuable. The exchange rate risk, therefore, tends to be neutralized,” emphasizes Hercules.

The executive also highlights cutting-edge technology as an asset for the producer, "since this type of credit line facilitates access to equipment such as Fendt machinery, whose operational efficiency gains offset the investment in just a few harvests."

Furthermore, the producer eliminates the waiting time and dependence on state credit lines. "The resource comes from the factory bank, available immediately, directly at the dealership, without tied selling or traditional banking bureaucracy," concludes Hercules.