Agricultural machinery and innovations from NIK financed by ProCredit Bank

Financing precision farming has never been easier. This is due to the program for quick access to lending for agricultural equipment and innovations, which NIK has developed together with ProCredit Bank for its clients.

Ivo Kumanov: Our goal is to deliver working solutions, with secured financing, that will pay off.

Many farmers will be recognized in the story of Atanas Valkov. He is a young farmer who strives for the development and improvement of the farm. This is also the reason why Atanas Valkov opted for the self-propelled sprayer Apache AS640and the autumn planter Kverneland DL, which it receives with financing from ProCredit Bank Bulgaria EAD in June.

Here's how this happens:

“With the planter, I settled on the brand first KVERNELAND. With it, the quality-price ratio is very good. Since I sow canola, I need two planters to do it faster. The working width of the machine is 4.5 m. The planter for me is perfect — light and fast,” explains the farmer from the village of Golyam Cherdak, Plovdiv, who cultivates 4300 acres of agricultural land.

“For the sprayer, my observations are also excellent. The machine of APACHEis of very good performance, very clean, easy to operate. When you enter the cabin, you visually cover everything. Walking along the field, the arrows do not move. A very stable machine and I am convinced that it will do an ideal job for me. Especially in rapeseed, where it is sprayed a lot. We also spray when it is high. Sunflower is also important to us in terms of spraying.

Therefore, I also need a self-propelled sprayer, and I think the machine APACHE AS640is perfect for my farm. A self-propelled sprayer for me is very important. Last year we sprayed 1000 decares of rapeseed 10 times, and that makes 10,000 decares in rapeseed alone. This year we have sprayed about 28,000 acres. It is very important that the self-propelled sprayer is in your hands. There are certain times in the year when you have to do a lot of work. Sprayed early in the morning, late in the evening. You have to have such a machine and be free to use it at the right time, “explains the farmer.

How did a farmer like Atanas Valkov with 4000 acres manage to buy premium machinery for his farm?

With the help of the joint program of NIK and ProCredit Bank, which was launched two months ago, farmers such as Atanas Valkov with 4000 decares of land manage to purchase premium machines for their farm.

With a loan from ProCredit Bank, financing can be provided not only for the purchase of machinery, but also for investments in precision agriculture solutions — management, navigation, smart inventories. One such example is the possibility of financing a mower, along with soil mapping, analyses, and providing variable fertilization maps.

“Funding has become a bit like a dream. Unexpectedly easy and fast. I have been working with ProCredit Bank for many years. I'm pleased. But this time things happened very quickly, thanks to ProCredit Bank and NIK. There were no problems, what we had agreed, it happened. Within 10 days, it was all over. They exceeded my expectations,” Atanas Valkov said.

Why a loan and not a lease?

“Because it is much easier to finance innovation through credit than through leasing. For some services, such as soil mapping for example, it is even impossible. In this campaign, we have put a lot of effort — both on the part of NIK and on the part of ProCredit Bank, and we are very happy that these joint efforts have already led to real results. It is noteworthy that we are already in the field in front of machines that are part of these results, and a farmer with 4000 acres can afford a self-propelled sprayer, which is very necessary for his farm”, shared Ivo Kumanov.

Was it worth buying a self-propelled machine for 4000 acres of land?

“Atanas Valkov is a farmer who knows how to count. When we distribute the cost of the self-propelled sprayer in the years in which it can be used, we practically arrive at an amount of less than 20,000 BGN per year. And this price is fully justified in order to carry out all the necessary spraying for the cultivation of 1000 decares of rapeseed, 1500 decares of wheat and 1500 decares of sunflower.

Atanas himself came to us and said: “I need self-propelled sprayer. Do you have a solution along with funding?” The decision was clear and I am glad that we are currently in the field and not in the office, which means that all parties have done our job well.

We believe that the future of agriculture is for our customers who know how to think. Therefore, our goal is to deliver working solutions with secured financing that will pay off”, added Ivo Kumanov.

ProCredit Bank finances Bulgarian farmers for 15 years

Kristiyan Durzhev: With NIK, we have developed a slightly more specific financing procedure, which allows a farmer to access financing for different types of machinery and equipment that he wants to purchase much faster and easier. This allows us to react much faster and more efficiently to the need for such a purchase. Unlike leasing companies, we, as a bank, can offer much more flexible terms.

Our idea is to finance clients who are focused on innovative agriculture, and improve their business. That is why we decided to support this investment of Atanas Valkov, who is a long-term client of ProCredit Bank. We have supported him in his other investments, believing that those he made with the purchase of machines from NIK company really make sense for his farm, said Kristiyan Durzhev, head of ProCredit Bank branch.

This is what Kristiyan Durzhev told The Farmer's Voice.

Are there any other farmers interested in this program?

— Yes, the interest is quite high, because what has been seen in recent years as the development of the agricultural sector in Bulgaria is that investments in new equipment are increasingly important and in one that allows farmers to cope with climate change, with the new requirements for processing and quality of crops.

Why did you bet on Nick?

— Because NIK offers new machines and at the same time purchases are accompanied by consultations. They select the best for each farmer, tailored to his needs. This is what we, as a bank, do — we provide the farmer with the best, tailored to his needs.

— Why is it more profitable for farmers to bet on credit rather than leasing?

— Financing equipment with a bank loan, rather than leasing, allows it to happen much faster and more flexibly. The loan allows financing up to 100% of the amount of the investment, even additional financing for VAT on such a transaction. Also, the bank can react more flexibly about time periods such as repayment terms, such as collateral on the loan. Many different products can be invented to meet the capabilities and requirements of each farmer.

At ProCredit Bank we have been financing clients for more than 15 years who are engaged in agriculture. What we have learned in these years is that it is a sector in which each year is different. And it is important to react at all times in an appropriate way so that the customer's business can be preserved. Like any banking institution, we can offer a change in the term of repayment installments, a change in the term of financing or additional financing that would help the business to continue to exist and develop.