Does cash still rule the farm in a world where technology and financing are transforming agriculture? Experts from John Deere Financial (JDF) and key agricultural partners say yes — but the reality is more complex.
While cash remains essential, smart financing is increasingly critical to help farmers grow and adapt in this evolving landscape.
“Cash certainly still plays a key role in farming,” says Antois van der Westhuizen, managing director of John Deere Financial. “But farmers need to balance the opportunity cost of holding cash versus leveraging financing to grow their operations.”
Van der Westhuizen explains that financing, when used strategically, can unlock growth.
“If a farmer finances equipment that pays for itself through improved productivity, they can free up capital to invest in livestock or diversify their income streams. This balance of cash and credit is what drives sustainable growth.”
Pieter Pienaar, credit sales and marketing manager at John Deere Financial, echoes this, noting the importance of understanding each farmer’s unique stage in the business cycle. “Young farmers need financing solutions that help them scale, while established farmers closer to retirement might prioritise cash to avoid debt.”
Partnering with Grain SA and Absa, JDF delivers a personalised approach – combining financial products with expert market insights to empower farmers.
Technology and sustainability: The new farming frontier
Corné Louw, agricultural economist at Grain SA, highlights that younger farmers bring new energy and a natural affinity for technology, enhancing efficiency and sustainability. Yet he cautions that not every farm can afford the latest tech – a reality JDF recognises when structuring finance solutions.
At Absa, senior economist Marlene Louw notes an increase in farmer deposits, signaling a cautious optimism rooted in strong harvests and market uncertainty. “Working closely with JDF and others, we see that managing capital – cash or financed – with operational knowledge is key to weathering volatility.”
Sustainability goals require smart financing
Reducing agriculture’s carbon footprint is a growing challenge. “It’s not about achieving net zero immediately, but about measuring emissions accurately and improving sustainability over time,” says Louw.
Here, JDF plays a pivotal role.
“Our financing models support farmers buying equipment that lowers emissions and boosts productivity,” van der Westhuizen explains. “For example, a farmer who invests R8 million in equipment with a 50% deposit can use the remaining capital to expand cattle herds – creating a diversified, more resilient business.”
Van der Westhuizen also busts myths about bank support: “We design products to help farmers through tough years, not to take their farms away.”
Innovation in equipment financing
A rising trend is equipment rental as a capital-light alternative to ownership.
“Farming is like a factory. You want to maximise output while managing your balance sheet,” says van der Westhuizen. “Some farmers reduce capital tied up in machinery by renting, freeing cash for other investments.”
Operations managers at Afgri Equipment and Senwes Equipment, William Nichols and Luan du Toit, respectively, confirm this. They emphasise that partnerships offering financing, technology, and hands-on expertise build lasting trust and help farms thrive.
Meanwhile, Louw advises farmers not to let emotion drive financial decisions. “Farming is personal, but success requires understanding your data, costs, and financing options – exactly the kind of guidance John Deere Financial provides.”
Pienaar sums up JDF’s mission: “We’re not just selling tractors; we’re enabling growth. The future of farming is technological, sustainable, and grounded in smart financial strategy.”
In summary, John Deere Financial’s experts agree: cash remains critical, but so does intelligent financing personalised to each farm’s needs. The key is choosing the right mix to build resilient, sustainable farming businesses.
READ NEXT: Farmers eye Starlink as a connectivity lifeline
