Through the Conecta Prime initiative, a total of R$500 million in credit will be made available until the conclusion of the 2025/26 season.
Since the agreement took effect, the platform has already facilitated R$200 million in credit to involved distributors, a figure described by the company as notable. This partnership with Farmtech accounts for half of the overall transactions processed on conecta.ag, with financial services highlighted as a key contributor to the platform's performance.
Distributors connected to conecta.ag can utilize Farmtech's credit facilities to acquire products, broaden their inventories, and secure operational funds. Patricia Ambrósio, responsible for financial services and structured operations at conecta.ag, explained that the arrangement delivers a completely digital process from order completion to payment resolution.
The system allows distributors to finalize transactions using pre-approved credit lines. "The deal is finalized on terms for the producer, but the dealer receives payment immediately, without compromising cash flow," according to Rafael Pilla, Farmtech CEO.
Marcelo Batistela, vice president for agricultural solutions at BASF, has outlined a goal to channel R$2.5 billion through structured financing arrangements, addressing limited availability of credit in the market. He noted that around 20% of BASF's agricultural operations, which contribute approximately 10 billion euros globally, stem from activities in Brazil.
The crop protection sector experienced strong expansion until 2022 but has since moderated. Batistela observed that future advances may shift toward enhancing efficiency rather than broad acreage increases. "We will see a reduction in horizontal growth rates. We're competitive, but we're producing at a velocity greater than demand growth."
To adapt, BASF is emphasizing innovation for improved producer outcomes, including higher yields and lower expenses. The company is also advancing digital tools via the xarvio platform, alongside marketplace features, financial offerings, and support for emerging agricultural ventures.
In biological products, BASF continues to invest in chemical solutions while growing its biological portfolio for integrated applications. These now comprise 10% of revenue in Brazil, with potential to rise further as adoption accelerates compared to traditional inputs.
For the 2025/26 season, credit access remains a primary concern due to challenges in securing funds for operations. Batistela indicated that, across various company resources and partnerships, BASF anticipates providing R$2.5 billion in financing this year—twice the amount from the prior season.
This approach, combining fintech integration and structured credit, enables input providers to facilitate capital flow within supply chains, complementing their core roles in product development and distribution.
By expanding financial support, BASF strengthens relationships with distributors and producers, helping navigate periods of constrained traditional lending influenced by market conditions.
The substantial increase in credit volume reflects confidence in the model's ability to sustain agricultural activity and promote resilient practices amid evolving sector demands.
Overall, these efforts demonstrate a comprehensive strategy to deliver value through technology, innovation, and accessible financing in a dynamic farming landscape.
