Incoterms 2020 for Agricultural Equipment and Seed Procurement
Incoterms decide who pays, who insures and who carries risk at every step from factory to farm gate. Choosing the wrong one is one of the most common — and most expensive — procurement mistakes. This guide summarises the Incoterms 2020 rules most relevant to agricultural buyers.
What changed in Incoterms 2020?
DAT was renamed to DPU (Delivered at Place Unloaded), CIP now requires all-risk insurance cover by default, and FCA allows an on-board bill of lading for containerised cargo. Only when explicitly referenced in the contract with the year (e.g. 'FCA Rotterdam, Incoterms 2020'). Without that reference, disputes fall back to local commercial law.
Paste your brief straight into our RFQ Builder — we identify qualified independent global suppliers on your behalf. Free for buyers.
Open the RFQ BuilderThe four rules you will actually use
For 95% of agricultural procurement, four rules cover the field:
- EXW (Ex Works) — cheapest headline, riskiest in practice. Buyer collects at the supplier's factory and handles everything. Rarely appropriate for international orders.
- FCA (Free Carrier) — supplier delivers to a named carrier or port; buyer takes over from there. Common for containerised seed and small equipment.
- CIF (Cost, Insurance, Freight) — supplier arranges ocean freight and insurance to the destination port. Buyer handles import clearance and inland transport. Standard for greenhouse structures and heavy equipment.
- DDP (Delivered Duty Paid) — supplier delivers to the buyer's site with everything paid. Highest headline price, lowest buyer effort. Good for turnkey projects and first-time buyers.
How Incoterm choice affects landed cost
A 'cheap' EXW quote from Europe to West Africa can carry USD 12,000–35,000 of hidden freight, insurance and clearance cost for a single 40ft container. Always normalise every offer to the same Incoterm before comparing prices (see the vendor comparison guide).
Insurance and risk transfer
Under CIF the supplier must insure to at least 110% of invoice value at minimum cover (Institute Cargo Clauses C). For high-value greenhouse or processing equipment, upgrade to Clauses A or arrange separate all-risk cover.
Practical recommendations
First-time importer: use DDP. Experienced buyer with a freight forwarder: use FCA or CIF. Avoid EXW for cross-border orders. Never use DAT — it was retired in 2020 and replaced by DPU.
Frequently asked questions
Ready to send a real RFQ?
Our sourcing specialist identifies qualified independent seed producers across Africa, MENA, Europe, Asia and the Americas, requests offers on your behalf and returns a side-by-side comparison. Private by default, free for buyers.
Start your RFQ