Beck's Commitment Rewards: Value or Gimmick?

It’s hard to believe it’s time to start thinking about next year’s crop decisions. With early order programs in full swing, seed is likely at the top of many farmers’ minds. As we transition our seed offering to Beck’s , we want to ease your mind and answer any questions you have regarding their products and programs.

Whether you’ve had a lot of exposure with Beck’s or just have heard passing comments, chances are you’ve heard rumblings of them being a “gimmick” company that relies on giving away “freebies” to earn business. We’ve heard it all before; “Why don’t they lower the cost of their seed?” “It’s just a toy catalog,” or “What a gimmick.” It’s easy to be skeptical when some things appear too good to be true.

However, as we’ve become more educated about Beck’s Commitment Rewards program and now understand the math (and logic!) behind this innovative program, we can say without a doubt that it is simply a financial tool for growers to add to their arsenal, especially in today’s market.

As it turns out… what some call a gimmick isn’t so much of a gimmick after all. Here’s why.

LEVERAGE BUYING POWER

Commitment Rewards is an equipment and financial tool that can provide your operation with a competitive advantage. The program is designed to help farmers leverage Beck’s buying power to overcome obstacles like access to working capital and high interest rates. Each year, Beck’s works with industry-leading equipment providers, placing bulk orders upfront to get the best possible pricing. By leveraging their significant buying power, equipment discounts are passed directly to growers that would not be attainable for a single operation.

IMPROVE YOUR CASH FLOW

Beyond getting access to better pricing, Commitment Rewards can put more cash back into your pocket.

Patrick Hines, a Missouri grower, has been a customer of Beck’s since 2021 and purchased a small amount of seed each year to try out on his farm. For 2024, he committed 100% of his acres to Beck’s and worked with his area dealer to sign a multi-year, Level 8 agreement with Commitment Rewards after learning more about the value the program offered.

“Part of my decision to commit 100% of my seed order this year was due to Beck’s flexibility in helping me put up a new equipment shed,” said Hines. “After meeting with my dealer at Beck’s Southern Illinois Field Show and seeing the terms of the agreement, I was shocked at how much cash Commitment Rewards would free up for me.”

And while Patrick’s Level 8 multi-year agreement didn’t cover the entire cost, he is now paying back a minimal amount per year for three years (on an already highly discounted equipment shed) with ZERO interest, saving him roughly $23,000. Plus, he can now write off the cost of that shed as an asset on his taxes that same year and boost his savings.

REDUCE YOUR INTEREST PAYMENTS

If you’re looking for innovative ways to increase your working capital, Commitment Rewards provides an interest-free payback over time. By partnering with First Mid Bank & Trust, Beck’s allows growers to use their earned points as a “down payment” on the equipment they need and pay the rest of the cost back to First Mid Bank & Trust completely interest-free.

Let’s break it down.

Say you are considering signing a Level 4 multi-year agreement at a $120,000 seed commitment. At this level, you would receive 80 total points to use, valued at $30,000 ($375 per point).

Your skid loader has been giving you fits, and it’s the next equipment upgrade you had on your list.

While this scenario may seem far-fetched, we can assure you that the savings and interest-free payments are not.

It’s not just about securing the tools you need for your operation at a heavily discounted, interest-free cost; it’s about freeing up cash that wasn’t previously available, providing you with the flexibility to purchase additional equipment that would not have been possible without the program.

WHAT COULD A COMMITMENT REWARDS AGREEMENT LOOK LIKE FOR ME?

While a skid loader might not be something you need on your farm, Beck’s has options for every operation and every acre size, ranging from large equipment, trucks and trailers, shop essentials, and even home and recreation. Although the examples we’ve included so far illustrate a three-year commitment, you can take advantage of the program with just a one-year commitment!

HELPING FARMERS SUCCEED

Beck’s chooses to put more money into farmers’ pockets by passing along additional value through Commitment Rewards than they would get through a simple cash discount on seed. By expanding farmer’s cash positions and freeing up working capital through Commitment Rewards, growers can secure the tools and equipment they need, create significant tax savings opportunities, and gain more value for their operations.

It’s a value-adding, working capital-multiplying, cash-expanding return on your seed investment.