For agribusiness, procuring resources before sowing has never been a simple matter of price. Seeds, fertilizers, crop protection products, fuel—all of these are not just expense items, but the foundation of the production cycle, on which yield, cost of production, and the financial result of the season depend. That’s why the decision of “when to buy” is often more important than the question of “for how much.”
February becomes a key month for such decisions. On one hand, the main technological parameters of the season have already been determined. On the other hand, there is still room for choice, maneuvering, and adjustment. At this moment, agribusiness faces a dilemma: secure procurement in advance or wait closer to sowing in hopes of more favorable conditions.
Why the timing of procurement is more critical than it seems
Most farmers think about procurement through the lens of price per unit of resource. However, in reality, the economics of procurement is far more complex. It includes not only price, but also resource availability, impact on liquidity, logistics, disruption risks, and the farm’s ability to execute technology within optimal timeframes.
Procurement “at the last moment” may look profitable on paper, but often creates additional indirect costs. Conversely, early decisions do not always mean overpaying—in many cases, they reduce overall financial pressure on the business.
Early Procurement: The Economics of Predictability
One of the main advantages of early procurement is predictability. Agribusiness clearly understands which resources and in what quantities will be available, delivery dates are fixed, and there is no risk of sowing disruption due to lack of materials.
From a financial perspective, this means the ability to plan cash flows more accurately. Expenses become predictable, and there is no need to make decisions under time constraints. For farms with large land banks, this is especially important, as even minor delays can scale into significant losses.
The Price Factor and Its Overestimation
Expecting price reductions is one of the most common reasons for postponing procurement. However, agricultural practice shows that the actual gains from “waiting” often turn out to be much smaller than they seem. The resource market reacts not only to demand, but also to logistics, currency fluctuations, and seasonal peaks.
Even if the price nominally decreases, agribusiness may lose on other components—more expensive delivery, warehouse shortages, limited availability of needed items. Ultimately, savings on price are offset by additional costs or risks.
Liquidity as a Key Argument in Choosing the Procurement Timing
For most farms, the main constraint is not price, but the availability of funds at a specific moment. Pre-sowing procurement often coincides with peak financial burden—land rent, equipment repairs, labor payments, tax obligations.
That’s why the decision on procurement timing must be made not in isolation, but in the context of overall cash flow. When expenses are concentrated in a short period, even a favorable price can create a cash gap and jeopardize technology execution.
Logistics and the Risk of Shortage During the Season
Another factor that is often underestimated is logistics. Closer to sowing, demand for resources increases sharply. This creates pressure on warehouses, transport, and supplier personnel. During such periods, even major players do not always guarantee fast delivery.
For agribusiness, this means a loss of flexibility. If the needed resource does not arrive on time, the technological window may be lost. Ultimately, the farm is forced to either change decisions or work under suboptimal conditions, which again affects the financial result.
Why “buying everything at once” is not always the right decision
Early procurement does not mean that all resources need to be purchased in one block. On the contrary, an effective strategy involves a differentiated approach. Some resources are critical and must be secured in advance. Others can be procured closer to the season without significant risks.
It is precisely this segmentation that allows agribusiness to combine predictability and flexibility. It reduces financial burden and provides the ability to respond to changing conditions without harming the production process.
Psychological Factor and Market Pressure
It’s worth separately mentioning the psychological aspect. The information environment before sowing often pushes toward impulsive decisions. Rumors about shortages, price increases, or supply problems force agribusiness to act hastily.
In such a situation, it’s important to rely not on emotions, but on your own calculations. Farms that have a clear procurement plan are much less susceptible to external pressure and make informed decisions.
February as the Optimal Moment for Strategic Procurement
February is precisely the point of balance between uncertainty and haste. Most parameters of the season are already clear, but peak demand has not yet begun. This creates an opportunity to negotiate, plan, and distribute expenses over time.
Agribusiness that uses February for systematic procurement preparation enters the sowing season with better control over finances and lower risks.
Procurement as Part of Financial Strategy, Not a Separate Operation
The key mistake is to perceive procurement as an isolated action. In reality, it is part of the farm’s overall financial strategy. It must be aligned with the expense schedule, production stages, and revenue forecasts.
When agribusiness begins to view procurement from this perspective, the question “when is it more profitable to buy” ceases to be abstract. It transforms into a specific management decision tied to actual cash flow.
